Brazilian Industry Confidence Hits Two-Year High, Commerce Expects Strong Sales
Date
11/27/2024 3:19:39 PM
(MENAFN- The Rio Times) Brazil's industrial and commercial sectors are experiencing a surge in confidence, signaling potential economic growth.
Recent data from the National Confederation of industry (CNI) and the National Confederation of Commerce (CNC) reveal positive trends across various segments.
The Industrial Entrepreneur Confidence index (Icei ) has reached its highest level since 2022. In November, 14 industrial segments saw an increase in confidence.
Four sectors, including biofuels, furniture, wood, and rubber products, surpassed the 50-point mark. This threshold indicates optimism among entrepreneurs.
Large industries maintained their confidence level at 54 points. Medium-sized companies registered 52.8 points, while small businesses showed a slight decrease to 51.5 points.
The Southern region of Brazil experienced the most significant boost in confidence, with a 2.2-point increase. Marcelo Azevedo, CNI's Economic Analysis Manager, noted that despite minor declines in some regions, entrepreneurs across all sizes and areas remain confident.
Brazil's Economic Outlook
The Icei serves as a valuable tool for predicting industrial production and, consequently, Brazil's Gross Domestic Product (GDP). In the commercial sector, the Merchant Confidence Index (Icec) rose by 1.4% in November, reaching 113.5 points.
This increase reflects positive expectations for year-end sales and the approaching Christmas season. All three components used to calculate the Icec showed improvements compared to both the previous month and November 2022.
José Roberto Tadros, President of the CNC-Sesc-Senac System, emphasized the importance of the holiday season for the sector. Felipe Tavares, CNC's Chief Economist, highlighted that retail optimism has influenced the hiring of temporary workers, reaching its highest level since December 2022.
Supermarkets, pharmacies, and cosmetics saw a notable 2.3% increase in confidence. The clothing, textiles, and footwear segment also experienced a 1.2% rise, driven by high year-end demand.
However, the durable goods sector showed a slight decline of 0.3% due to vulnerability to high interest rates. These positive indicators suggest a potential economic recovery for Brazil.
As confidence grows across industries and commerce, the country may see increased investment and production in the coming months. This trend could lead to job creation and overall economic growth, benefiting both businesses and consumers alike.
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