O ICE (Business Trust Index) Retaine 2.4 points in August compared to July, the third fall followed by 88.2 points, FGV (Getúlio Vargas Foundation) said on Monday (1st).
According to FGV, the index fell to the 80 points range for the first time since March 2021, when it was 87.8 points.
On quarterly moving averages, business confidence shrunk 1.8 point in August.
“August business polls signal an intensification of the deceleration trend of economic activity and for the deterioration of expectations compared to the coming months. The negative highlight is the transformation industry, whose confidence index began the year of the 100 -point mark, considered of neutrality, and now approaches 90 points, at the limit between the region that indicates moderate pessimism and more accentuated pessimism” Campelo Junior, Superintendent of Public Statistics of IBRE/FGV (Brazilian Institute of Economics of FGV), in an official note.
The corporate confidence index brings together the data from the polls of the Industry, Services, Commerce and Construction.
The calculation takes into account the weights proportional to participation in the economy of the investigated sectors, based on information extracted from the annual structural research of IBGE (Brazilian Institute of Geography and Statistics).
According to FGV, the goal is for Ice to allow a more consistent assessment of the rhythm of economic activity.
O Isa-e (Current corporate situation index) fell 1.3 point in August compared to July 91.7 points.
“After presenting some stability for much of the first half, the index accumulates 3.7 crash points in the last three months,” said FGV.
O Ie-e (Expectation index) had a reduction of 3.4 points to 84.8 points, lower level since June 2020, during the pandemic, when it was 79.2 points.
As for the current situation, the component that measures demand at the present moment decreased 0.8 point to 93.3 points, while the item that evaluates satisfaction with the current business situation retreated 1.7 points to 90.2 points.
Among expectations, the demand expected for the next three months fell 3.6 points to 84.4 points. The component that measures expectations for the evolution of business six months ahead shrunk 3.3 points to 85.4 points.
“The result shows a significant deterioration of expectations, both in the short term horizon and a longer horizon,” said FGV.
The collection of the Business Trust Index gathered information from companies from the four sectors between August 1st and 25th.
