Results of November for the ICEI index, measuring the level of confidence among Brazilian industrial entrepreneurs, have shown a small decline from October to November, after three consecutive months of increase, reaching the level of 52.6 points in November, against 53.2 points in October, still above the level of 50.0 points line that divides scenarios from pessimism to optimism.
According to the sector association, CNI, which issues the index, the decline reflects a more negative evaluation and a higher level of pessimism in relation to the Brazilian economy, although the index remains in level that denotes confidence among Brazilian industrial entrepreneurs.
The component of the index that measures the current conditions declined by 0.5 point 48.3 points, clearly a pessimist view, while the component that measures expectations declined by 0.7 point to 54.7 points in November, an indication that the industrial entrepreneurs in Brazil maintain positive perspectives in relation to the next six months, although they are not entirely comfortable with the current conditions of the domestic economy.
According to analysts, the main doubt about the Brazilian economy today is about the fiscal deficit, which is exceeding the target established for this year by a narrow margin.
The country’s financial authorities are discussing alternatives to reduce expenses and to increase taxes in a plan that is expected to be announced this week.
The research was conducted between November 1 and 7, covering representatives of 1,209 industrial companies.