Brazil business confidence slumps in May

BY  | FROM  | 2018-05-31 10:38

Brazil's business confidence index (BCI) dipped in May to its lowest level since November 2017, dragged down by the slow pace of economic recovery, according to a report released Tuesday.

The report by Brazil's Getulio Vargas Foundation (FGV), a policy think tank, showed the BCI decreased 0.6 in May to settle at 92.8 points, the lowest level since November's 92.1 points.

"After remaining stable at the beginning of the year, business confidence retracted for the second month in a row, influenced by dissatisfaction with the slow pace of the economy, political uncertainty and poorer external outlooks," the FGV said.

The index could slump considerably in June, because this survey was carried out before a massive nationwide truckers' strike paralyzed Brazil for over a week starting May 21, leading to economic losses for many businesses, the foundation said.

Confidence was most eroded in the sales (-4.1 points) and services (-2.4 points) sectors, while the BCI remained steady in the industrial and construction sectors.

Brazil is recovering from its worst recession ever, which saw the economy shrink in 2015 and 2016, with GDP falling 7 percent.

In 2017, Brazil's economy grew one percent, and this year's forecast called for 3 percent growth, but high unemployment and lower domestic spending has curtailed expansion.

The latest market forecast calls for 2.37 percent growth.

Unemployment was at 12.9 percent for the three-month period from February to April, meaning 13.4 million people were out of work, the state statistics agency IBGE said Tuesday.

    Related News

      Financial Times

    • Fed fears market misreading of guidance
    • The US Federal Reserve is keen to revamp its forward guidance about future interest rates but terrified of a market misunderstanding, according to the minutes of its September meeting

      Reuters

    • Asian shares rebound after Fed renews dovish credentials
    • Asian shares bounced back and the dollar fell on Thursday after minutes of the U.S. Federal Reserve's latest policy meeting showed policymakers have some concerns about downside risks to the global economy and the dol...

      USA TODAY

    • Nigeria succeeds at containing Ebola
    • People here are shaking hands again, kissing, hugging, touching. These days, shops are open, people are working, and children are finally going back to 
      school
    Chinese Dictionary: