Preliminary survey results signal improvement in industrial confidence in July
The preliminary July results of FGV’s Industrial Survey signal a 12.5-point rise in the Industry Confidence Index (ICI) in relation to June’s final number, to 90.1 points. If this result is confirmed, the index will have recouped 74% of the losses observed in March and April.
This increase in confidence is due to business people’s improved assessment of the present moment and, above all, their expectations for the coming months. The Expectations Index went up 14.6 points, to 90.8 points, while the Current Situation Index rose 10.2 points, to 89.4 points. In terms of rolling three-month averages, after declining for four months in a row, the Current Situation Index and Expectations Index started to increase again (7.3 and 13.7 points, respectively).
The preliminary results as of July 22 indicate a recovery of 5.8 percentage points in the Industrial Installed Capacity Utilization Level in the month, to 72.4%. If this result is confirmed, the level will be just 3.8 percentage points lower than in February (76.2%), but still 7.4 percentage points below the average rate between January 2001 and March 2020.
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