Industry confidence starts 2023 with a slight drop and shows accommodation in January, says FGV

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Perception of a further weakening of demand reflects the increase in the level of inventories, says an economist. Industry confidence in Brazil showed a slight decline in January, with the sector starting 2023 in accommodation, informed the Getulio Vargas Foundation (FGV) this Friday (27). The Industry Confidence Index (ICI) dropped 0.2 points compared to the previous month, according to data from the FGV, reaching 93.1 points in January. The Current Situation Index (ISA), which measures businessmen’s sentiment about the present situation in the industrial sector, dropped 0.7 points to 93.1 points, according to the FGV, given the perception of a further weakening of demand that reflected in an increase in the level of inventories, explained the economist to FGV Ibre Stéfano Pacini. The Expectations Index (IE), an indicator of perceptions about the coming months, rose 0.4 points, reaching 93.2 points, since businessmen project an improvement in the business trend generated by some reaction in demand and some recovery in hiring, completed Pacini. “Even with less pessimistic results, this would not reflect an improvement in production in the coming months, which may be related to the level of inventories”, explained the FGV IBRE economist.

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