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Brazil's Business Confidence Index hits 8-year high

RIO DE JANEIRO
2021-08-03 05:11

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RIO DE JANEIRO, Aug. 2 (Xinhua) -- Brazil's Business Confidence Index (BCI) hit an eight-year high in July, and marked four consecutive months of growth, the Getulio Vargas Foundation (FGV), an economic think tank, said on Monday.

The BCI rose 3.1 units in July to reach 101.9 points, "breaking the neutrality barrier of 100 points, with an increase in confidence in the four major sectors analyzed," the FGV report said, referring to commerce, construction, industry and services.

In July, the perception of the current situation increased 1.6 points to reach 99.7, its highest level since October 2013, while the index of expectations for the next few months grew 3 points to reach 103.9, its highest level since June 2013.

The report warned that despite the "favorable" figures, the perception of the current situation in services remains "weak," although there is optimism regarding the coming months.

In addition, "industry, the sector with a more consistent performance in recent months, continues to face problems in the supply of important products," it said.

Still, it was the first time in the post-pandemic era that all four sectors registered higher indexes than the previous period, something that only industry had achieved before.
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