Industry registers second consecutive month of recovery in confidence

The resumption of industry confidence in July is explained by the improvement of some of the main economic indicators, according to economist Renan Gomes de Pieri. He claims that the positive data on employment, income and Gross Domestic Product (GDP), for example, lead to a more optimistic perspective and, as a consequence, a greater expectation of industrial production. The expert also highlights the economic agenda being discussed in the National Congress.

“Tax reform and the new fiscal framework generate, or will generate, a more positive economic environment. Even if the changes, mainly in the tax reform, take years to be implemented, this improvement in expectations can already lead to an increase in investments today. We know that, in industry, investment planning lasts for decades. So these positive changes for the future can lead businessmen, today, to review their investment processes”, he explains.

The Industrial Entrepreneur Confidence Index (ICEI) increased by 0.7 points, from 50.4 points to 51.1 points. The number, above the 50-point dividing line, indicates sector confidence. According to the survey, released by the National Confederation of Industry (CNI), it is the second consecutive month in which the industry demonstrates confidence. The advance of the index in July is mainly due to the less negative assessment of the current conditions of the Brazilian economy and companies, according to the CNI.

However, despite the advance of 1.3 points, the Current Conditions Index remains below the 50-point dividing line, with 45.5 points. The Expectations Index rose 0.4 points to 53.9 points. The number shows industry optimism for the next six months. Federal deputy Vitor Lippi (PSDB-SP), member of the Parliamentary Front for Competitive Brazil, cites a set of important measures to improve the confidence index, such as tax reform, the fiscal framework and the performance of the National Bank for Economic and Social Development (BNDES).

“Among them, the issue of the Ministry of Industry, which was recreated and which has been making a good dialogue with the sectors, listening to the sectors, creating an expectation of support for the resumption of industries, the reindustrialization in Brazil that is being built. This creates a favorable expectation for dialogue, understanding and the development of plans that can have a positive impact in supporting the neo-industrialization of Brazil”, he points out.

The survey had the participation of 1,305 small, medium and large companies, between the 3rd and 7th of July.