Brazil's industry confidence at highest level in over 10 years
Published: Dec 29, 2020 02:34 PM

A man sells protective shields in front of a closed store amid COVID-19 outbreak in Sao Paulo, Brazil, on June 8, 2020. (Xinhua/Rahel Patrasso)

 Brazil's industry confidence rose 1.8 points in December to 114.9 points, reaching the highest level in more than 10 years, an economic research center said Monday.

The Industrial Confidence Index (ICI) rose in December to the highest level since May 2010, when it peaked at 116.1 points, according to the Getulio Vargas Foundation (FGV).

With the December result, the average ICI for the fourth quarter of the year climbed to 113.1 points, 14.7 points more than the third quarter average of 98.4 points.

After it hit bottom in April, the ICI's recovery, driven by intermediate goods, indicates that industry has entered a favorable stage, with a rise in demand, the FGV said.

In December, 12 of the 19 industrial sectors it analyzed had an increase in their confidence index and 17 were at a higher level than in February, before the COVID-19 pandemic arrived in the South American country.

The report confirms the recovery of the Brazilian industry after a sharp drop in indicators from March to May due to the COVID-19 impact.

The FGV, a private center for economic studies founded in 1944, is one of the main institutions for political and economic analysis in Brazil.
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