Brazilian Industry Investment Intent grows in Q1

The Investment Intent Indicator calculated by FGV’s Brazilian Institute of Economics (IBRE) rose 6.9 points in 1Q of 2017 over the last quarter, reaching 100.0 points. This is the indicator’s highest level since 1Q 2015 (100.8). After four consecutive increases, the indicator has now made it to the neutral range, between pessimism and optimism. The indicator assesses the investment intent among industrial corporations, helping anticipate economic trends.

“The indicator high seems to be related to better prospects regarding Brazil’s economic growth this year, among other factors. The recent downward trend regarding the uncertainty surrounding such investments is also great news. Nonetheless, there are still risks in the short and medium-term scenario, particularly in the political arena, which could put off these investments,” said Aloisio Campelo Jr., Superintendent of Public Statistics at IBRE.

In the first quarter of 2017, the percentage of companies that expect to invest more in the next 12 months was identical to the percentage of companies who expect to invest less in this period (19.9%). In the previous quarters, these figures were 17.8% and 24.7%, respectively.

The complete study is available, in Portuguesse, via IBRE’s website.