Industry confidence in Brazil rose in April for the first time since July last year, the Getulio Vargas Foundation (FGV) said on Wednesday, a sign that may indicate normalization of activities in the sector.
FGV data showed that the Industry Confidence Index (ICI) rose by 2.4 points in the month to 97.4 points, interrupting a sequence of 8 consecutive monthly losses.
“Influenced by the reduction of problems with the supply of inputs and by the passage of the outbreak of the Ômicron variant and the moment of greater pessimism with the potential impacts of the Russia-Ukraine War, the rise in industrial confidence in April can be interpreted as a movement in the towards the normalization of activities in the sector”, said in a note Aloisio Campelo Jr., economist at FGV Ibre.
“Indicators related to the present moment are moving towards neutrality levels and expectations have become less pessimistic, with emphasis on favorable assessments in relation to external demand”, he added.
The Current Situation Index (ISA), which measures the sentiment of entrepreneurs about the present moment of the industrial sector, rose 1.4 points in April, to 98.4 points, according to FGV.
The Expectations Index (IE), in turn, an indicator of perception about the coming months, advanced 3.2 points, to a reading of 96.0. Both indices rose for the first time in nine months.
Data released by the IBGE earlier this month showed that Brazilian industry resumed growth in February, rising 0.7% over January, although it was still below the pre-pandemic level.