Brazil Business Confidence Improves but Remains Weak

Brazil’s Industrial Entrepreneur Confidence Index rose to 48.5 in January 2026 from 48.0 in December, the index remaining below the 50-point threshold for all of 2025 and signaling persistent pessimism among industrial firms. The Current Conditions Index increased to 44.0; assessments of companies’ conditions improved by 0.8 points to 47.0, while views on the Brazilian economy deteriorated by 1.1 points to 38.0. The Expectations Index advanced to 50.7, standing just above the neutrality line. Expectations for the economy worsened by 0.4 points to 42.5, while expectations for companies rose 1.2 points to 54.8.

Brazil’s Industrial Entrepreneur Confidence Index fell to 48.0 in December 2025 from 48.3 in November, ending a three-month streak of gains. The index remained below the 50-point threshold for all of 2025, signaling persistent pessimism among industrial firms. The Current Conditions Index slipped to 43.8: assessments of companies’ conditions fell 0.7 points to 46.2, while views on the Brazilian economy were broadly unchanged, edging up 0.1 point to 39.1. The Expectations Index eased to 50.0, halting four consecutive increases and landing exactly at the neutrality line. Expectations for the economy deteriorated by 0.4 points to 42.9, while expectations for companies dipped 0.3 points to 53.6.

Brazil’s Industrial Entrepreneur Confidence Index rose to 48.3 in November 2025 from 47.2 in October, marking the third consecutive increase but still below 50. The index for company conditions rose 0.4 points to 46.9, and for the national economy climbed 2.3 points to 39.0. The expectations index advanced 1.4 points to 50.4, showing growing optimism for the next six months. Within it, expectations for Brazil’s economy increased 2.3 points to 43.3, and for companies rose 0.7 points to 53.9. Despite the improvement, the overall confidence index has remained below 50 for eleven consecutive months, indicating continued lack of confidence though pessimism has moderated.