Performance drops, and small industry points to tax burden and interest rates as main problems, says CNI

[ad_1]

Reduction was 3.1 points in the last quarter of 2022. Entrepreneurs also reported a lack of confidence in January 2023, for the first time since July 2020. Employees of the Alto Tietê industry work with welding Miguel Ângelo/Ciesp Small Brazilian industries had drop in the performance index in the last quarter of 2022. This is what the Panorama of Small Industry (PPI) shows, released by the National Confederation of Industry (CNI) this Monday (30). The retreat was 3.1 points, to 44.3 points – even so, above the historical average of 43.8 points. Industries with up to 50 employees are considered small. According to the survey, the tax burden and interest rates were the main problems faced by entrepreneurs in the sector in the last three months of last year. The survey shows that 37.6% of entrepreneurs in the manufacturing industry considered the tax burden the main difficulty. Among construction entrepreneurs, the problem was pointed out by 24.5%. High interest rates were at the top of construction complaints, cited by 29.3% of respondents. The problem was also pointed out by 21.9% in the manufacturing industry. Access to credit The Financial Situation Index, released in the PPI, had a slight drop in the last three months of 2022, by 0.7 points, and ended the year at 43 points. Compared to the same quarter of 2021, the increase was 1 point. The survey also highlights complaints regarding access to credit. Entrepreneurs from the three sectors (construction, transformation and extraction) reported an increase in dissatisfaction in the period. “The credit market scenario is challenging, mainly due to the high level of interest rates. Therefore, it is even more important that micro and small companies seek adequate guidance when looking for financing or loans”, says CNI’s Economic Policy manager, Fábio Guerra. The Selic, the country’s basic interest rate, has been at 13.75% per year since August 2022. Lack of confidence Entrepreneurs have not started 2023 excitedly. The Industrial Entrepreneur Confidence Index (ICEI) for small industries fell to 48.8 points in January 2023, after falling 1.9 points compared to December. It’s the first time since July 2020 that the small business owner reports a lack of confidence. “When the value of the indicator is below the 50-point dividing line, there is a change from the state of confidence to lack of confidence. This lack of confidence contributes to a more cautious behavior on the part of businessmen when making investments and hiring”, says the report.

[ad_2]

Source link