ICEI: Industry confidence grows in December, according to CNI indicator

Expectation

Entrepreneurs in the sector show optimism for the next six months in relation to their companies and pessimism about the Brazilian economy

Industry confidence rose in December, after two months of decline and stability in November. The Industrial Business Confidence Index (ICEI), released by the National Confederation of Industry (CNI), shows an increase of 0.6 points in the month and reaches 51 points — above the 50-point dividing line that separates confidence from lack reliable.

CNI economist Larissa Nocko explains that, to compose the index, businesspeople are asked about four aspects: assessments of the company’s current conditions and the Brazilian economy; and expectations for the coming months for the company and the Brazilian economy.

“What drove the December index were the first two components, showing a less negative assessment of the current conditions of the company and the Brazilian economy. We talk about less negative evaluations because they remain below 50 points, which indicates a worsening condition,” he says.

According to ICEI, businesspeople maintain positive expectations for the next six months. However, optimism, according to the CNI, is restricted to the companies themselves. In relation to the Brazilian economy, the sector’s view is pessimistic. The survey interviewed 1,356 companies — 545 small, 497 medium-sized and 314 large.

Legislative

Federal deputy Alceu Moreira (MDB-RS), one of the coordinators of the Chemical Industry Parliamentary Front, assesses that proposals being processed in the National Congress contribute to increasing the industry’s confidence and also increasing the sector’s competitiveness. Among them, the parliamentarian highlights the Fertilizer Industry Development Program (Profert), the Fuel of the Future project and, in particular, tax reform. Furthermore, the deputy defends predictability for companies.

“Having legal security and predictability of 10 years guaranteed by law in the achievement of public policies. It’s not possible to make an eventual law, the industrial plant moves to another part of the country, then another government comes, doesn’t agree with it, changes and it’s left watching ships. There is no way to. There must be 10 years of predictability”, argues Alceu Moreira.

*Source: Brasil 61

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