Business confidence recovers in May, points out CNI

The indicator ranges from 0 to 100. Values ​​above 50 points indicate business confidence.

Confidence of industrial entrepreneurs falls in March, but expectations of companies remain positive

Despite the recovery of confidence presenting a small variation, the improvement was observed in all components of the index, the Current Conditions Index and the Expectations Index.

The Current Conditions Index advanced 0.6 points to 43.1 points. According to the survey, this is the first monthly advance since September 2022 and the high shows that entrepreneurs see the evolution of current conditions less negatively in May compared to April.

CNI’s Economic Analysis manager, Marcelo Azevedo, explains that businessmen without confidence tend to be more cautious when making decisions. Therefore, it is important to maintain trust. “Especially stronger trust, longer. They tend to increase production, hiring and even investments”, he points out.

The Expectations Index rose 0.3 points, reaching 52.2 points. By rising slightly above the 50-point dividing line, the indicator demonstrates a more optimistic view of businessmen regarding the scenario for the next six months.

According to Azevedo, the index has been oscillating close to the dividing line for many months and, due to this, expectations are moderate. “Expectations for the next six months are also moderate. They are positive, both for the company and for the economy, but there is a much more significant moderation that also keeps the confidence index at that level”, he informs.

The survey was answered from the 2nd to the 8th of May. 1,450 companies participated, 571 small, 549 medium and 330 large.