Indexes from all geographic regions show confidence among industrial entrepreneurs, reveals CNI

In April 2024, the indices for all geographic regions show confidence among industrial entrepreneurs, although they showed different variations between the different geographic regions from March to April. The information comes from the Sector Results survey of the Industrial Business Confidence Index (ICEI), from the National Confederation of Industry (CNI).

CNI analysis manager, Marcelo Azevedo, reports that confidence indices show a drop in the North region (52.6 points) and the Southeast (50.4), but showed growth in the Northeast.

“The index for the Northeast shows a slight increase of 0.7 points, after two months of consecutive falls, totaling 54.9 points. The indices for the Central-West and the South region show small variations, close to stability”, he points out.

According to the survey, from March to April 2024, confidence decreased in 21 of the 29 industry sectors considered, while it increased in seven, with one sector remaining stable in the month. Azevedo highlights that, even so, in April 2024, 18 of the 29 industry sectors considered are confident.

The most confident sectors are: Maintenance and repair (59.0 points), Biofuels (55.9), Pharmachemicals and pharmaceuticals (55.5) and Motor vehicles (54.2).

The sectors with the least confidence are: Non-metallic mineral products (45.9 points), Wood (46.6), Furniture (47.8) and Perfumery, cleaning and personal hygiene (48.2).

Economist Cesar Bergo points out that among the factors that may have contributed to the drop in confidence is the interest rate, which remains high and makes loans and financing difficult.

“Economic uncertainties, especially in the international field, are generating some distrust. There is no doubt that the increase in production costs, generated mainly by financial issues and impacted by the international market, such as the rise in the dollar, a thanks to oil, are aspects that weigh on confidence”, he explains.

Expectations

According to Bergo, the international scenario should also impact forecasts for the coming months.

“It is quite difficult to recognize the war in the Middle East. You also have the issue of the war in the region of Ukraine and Russia, there is the impact of restrictive American monetary policy”, he emphasizes.

He explains that all of this ends up leaving room for businesspeople not to believe in the prospects of falling interest rates, directly impacting the industrial sector.

Read more:

Analysts repeat the Selic high projection