Sadia is one of the world’s leading producers of chilled and frozen foods. Established in Brazil in 194...
Cyrela Brazil Realty is the largest residential real estate developer in Brazil. Considered one of the m...
Today, Banco do Brasil is the largest financial institution in the Country with 24.4 million clients and ...
CPFL Energia is a holding company in Brazilian electricity sector, operating through its subsidiaries in ...
Copersucar S.A. is the largest Brazilian sugar, ethanol and bioenergy company and a significant player in...

Industry and Service Confidence Grows in October

Resumption of Growth

Industry Index reached the highest level since April 2014; Services presented the best result for the month of the last three years

The resurgence of growth in Brazil continues to generate reflections in the Industry and in the Services area. Two indexes released  on Tuesday (31) by the Getulio Vargas Foundation (FGV) reveal that the recovery of the sectors has taken consistency. The Industry Confidence Index (ICI) gained 2.6 points this October and reached 95.4 points, the highest since April 2014 (97 points). The Service Confidence Index (ICS) rose 2.2 points to 87.8 points, the highest level for the month of the last three years.

In industry, the rise in confidence reached 10 of the 19 segments surveyed. The main driver of the result was the Current Situation Index (ISA), which increased 4.9 points to 95.5 points in 14 of the 19 segments. The Expectations Index (IE), in turn, rose by 0.3 point and now stands at 95.2 points, rising in 7 of the 19 segments.

The good result in the Services occurs due to the increase of confidence in 9 of the 13 main activities surveyed. The positive performance in October was determined by the improvement in both the current situation and the expectations for the following months. The Current Situation Index (ISA-S) advanced 2.3 points, and the Expectations Index (IE-S), 2.1 points.

"The rise in service confidence in October has as its main mark the high level of dissemination of good performance across sectors. The most favorable reading on the business environment affected current and future evaluations, as well as aspects such as the impetus of employment and the level of utilization of installed capacity, "says Silvio Sales, a consultant at FGV IBRE.

Employment

Employment prospects in the sector for the coming months are also positive. The Employment Trend Indicator in the Sector broke the 100-point barrier in October for the first time in 34 months.  The result of 101.3 points indicates a percentage of companies planning hirings (16.5%) higher than those who plan cuts (14.5%).

According to the FGV, entrepreneurs now have a more favorable reading on the business environment and the pattern of widespread improvement in corporate perception "must be sustained in the coming months, except for the occurrence of some shocking fact coming from the political field."

Source: Government of Brazil, with information from FGV