Brazil industry confidence falls in July

Brazil's Industry Confidence Index fell 1.5 percent to 113.6 points in July, the second straight decline, the Getulio Vargas Foundation (FGV) announced Wednesday.

The figures indicate a deceleration in the industrial sector's growth, according to the FGV. However, compared to the same period in 2009, the indicator was up 18.2 percent.

Besides, industry confidence is now at roughly the same levels registered in January and in July 2008, before the escalation of the international financial crisis.

According to the FGV, 25.8 percent of the Brazilian industrialists considered the current demand strong, down from 28.5 percent in June, while 9.7 percent considered the demand weak, in comparison with 7.6 percent in June.

As much as 54.7 percent of the companies covered in the study expect the business scenario to improve in the next six months, slightly falling from 54.8 percent in June. Some 0.7 percent expect the situation to worsen, compared with 2 percent in June.

The FGV study, conducted on July 5-26, covered 1,147 companies from all over Brazil.

Source: Xinhua