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Brazil’s Industrial Confidence Index has the lowest level in 4 months

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Brazilian industry confidence interrupted a series of three ups and fell sharply in June for the lowest level in four months, hurt by the political uncertainties surrounding President Michel Temer.

The Getulio Vargas Foundation (FGV the acronym in Portuguese) reported on Wednesday that the Industrial Confidence Index (ICI) fell 2.8 points in June to 89.5 points, the lowest since February (87.8 points). The previous month To the highest level since April 2014.

“Expectations, which have been key players in the dynamics of confidence, were achieved with increasing uncertainty following the outbreak of the new political crisis in May,” said the coordinator of the FGV / IBRE Industry Survey , Tabi Thuler Santos, in note.

This week, the Attorney General of the Republic, Rodrigo Janot, filed a criminal complaint against President Michel Temer for the crime of passive corruption after the detention of JBS executives.

Temer reacted affirming that the complaint presented against him is a fiction and has no grounds, and left for the attack against Janot.

This whole scenario has a direct impact on the expectations of consumers and entrepreneurs, when they question the possibilities of the Congress to approve the reforms underway.

The industry confidence expectation index (EI) fell 3.6 points to 92.1 points, with prospects worsening for the next three months, the index having reached its lowest level since December 2016. Inside the subject: Learn with TOTVS 8 concepts to implement the Industry 4.0 Sponsored

The Current Situation Index (ISA) fell by 2.0 points to 87.0 points, mainly due to the deterioration of stock level assessments.

“The survey also indicates the interruption of the process of adjustment of industrial stocks and the favorable contribution of the external market to the performance of the sector in recent months,” added Thabi.

In turn, the level of utilization of installed capacity fell 0.5 percentage point to 74.2 percent, the lowest level in December last year.

The final reading of the ICI was worse than its forecast, which pointed to the fall of 2.3 points.