Brazil industrial leaders' expectations improve for second straight month
The industrial business leaders' expectations have improved for the second consecutive month, a survey by the National Confederation of Industry (CNI) has found. The Index of Expected Demand, which measures if business leaders expect demand levels to increase in the next six months, reached 52.9 points, according to the Industrial Survey. Scores above 50 indicate optimism.
According to the CNI, the results reveal that business leaders are beginning to become more optimistic about the outlook for the second semester, despite still weak industrial activity levels.
However, investment intentions, including for machinery and equipment purchases, remain low at 41.4 points. One of the factors that discourage investment is the Capacity Utilization Rate, which is still low at 64%, the same level for the third consecutive month. In July 2015, it was 66%. With idle capacity, there is no need to expand machinery to increase production.
The survey was conducted in July 1–13 across Brazil and heard 2,589 organizations in the industrial sector, including 1,054 small, 946 medium, and 589 large businesses.
Translated by Mayra Borges
Fonte: Brazil industrial leaders' expectations improve for second straight month
