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Brazil's industrial confidence rises to highest level since January 2013

Xinhua News,RIO DE JANEIRO
2020-09-29 05:13

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RIO DE JANEIRO, Sept. 28 (Xinhua) -- Brazil's industrial confidence reached its highest level since January 2013 in September, indicating the worst is over for the pandemic-hit economy, the prestigious Getulio Vargas Foundation said on Monday.

According to a report by the economic think tank, the Industrial Confidence Index (ICI) rose 8 units in September to reach 106.7 points, the same level it had in January 2013, and marked its fifth consecutive monthly increase.

"The September survey shows that the industrial sector is satisfied with the current moment and moderately optimistic about the next three months. In the opinion of business owners, demand is satisfactory ... and there is an expectation of an increase in production," the report said.

"This outcome suggests that the worst of the crisis has already passed and the sector will have the strength to continue presenting positive results in the next quarter," it added.

However, there is still some "uncertainty about the direction of the economy, following the withdrawal of emergency government programs" that provided financial aid to low-income households, said the report.

In the third quarter, average industrial confidence registered 98.4 points, or 32.7 points higher than in the second quarter (65.7 points).

The percentage of companies that forecast an improvement in the current situation rose from 33 to 39.9 percent, while those that expected a worsening of the situation fell from 22.5 to 13.6 percent.
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