Demand level increased 1.8 points, best result since October 2022Brazil Agency
Published 04/26/2024 09:19
The Industry Confidence Index (ICI) increased 0.3 points in April, to 96.8 points, reports the Getulio Vargas Foundation (FGV). The index, however, fell 0.2 points, in quarterly moving averages, to 96.9 points.
The Industrial Installed Capacity Utilization Level (Nuci) rose 1.1 percentage points in the period, to 82.4%.
“After a positive first quarter, industry confidence continues to advance, but with different signs between indicators of the current situation and the future of business”, writes economist Stéfano Pacini, from Ibre/FGV, in a note. “Despite the gradual improvement in current demand, business owners see inventory levels increasing again.”
There was an increase in eight of the 19 industrial segments surveyed by the survey. The Expectations Index (IE) increased 1.4 points, to 97.8 points, the highest level since September 2022 (97.9 points). The Current Situation Index (ISA), however, fell 0.6 points, to 96.0 points.
Among the IE components, the indicator that measures business trends in the following six months advanced 3.0 points, to 98.0 points. The index that measures the momentum behind hiring rose 2.4 points, to 102.0 points, the highest level since September 2022 (104.0 points). The indicator that measures production in the following three months fell 1.4 points, to 93.4 points, the third consecutive drop.
In ISA openings, the level of stocks was what most influenced the fall, worsening by 3.0 points in the month, reaching 105.3 points – above 100 points this indicator signals that the industry operates with excessive stocks. The current business situation fell 0.7 points, to 97.8 points, while the level of demand increased 1.8 points, to 95.7 points, the best result since October 2022 (96.9 points).
