Brazil Industry Confidence Dips in December

Brazil’s Industrial Business Confidence Index fell 2.3 points to 44.4 in July 2026 from the previous month, marking its second consecutive decline and the 19th consecutive reading below the 50-point threshold, according to the National Confederation of Industry (CNI). The reading was also the lowest since June 2020, reflecting more widespread pessimism among manufacturers. The Current Conditions Index slipped 0.7 point to 41.6, as assessments of the Brazilian economy fell 1.3 points to 34.7 and firms’ own conditions declined 0.3 point to 45.1, indicating businesses continued to view conditions as worse than six months earlier. Meanwhile, the Expectations Index dropped 3.1 points to 45.8, its steepest decline since November 2022. Expectations for the Brazilian economy fell 3.8 points to 37.2, while firms’ own outlook weakened 2.7 points to 50.1, nearly eliminating the optimism recorded in previous months.

Brazil’s Industrial Business Confidence Index fell 0.5 point to 46.7 in June 2026 from the previous month, marking its 18th consecutive reading below the 50-point threshold. The Current Conditions Index declined 0.6 point to 42.3, driven mainly by a 0.9-point drop in assessments of companies’ own conditions to 45.4. Meanwhile, the indicator for the broader Brazilian economy slipped 0.1 point to 36.0, signaling a perception of worsening economic conditions. The Expectations Index also weakened, falling 0.4 point to 48.9. While expectations for the Brazilian economy edged up 0.1 point to 41.0, the indicator for companies’ own prospects declined 0.7 point to 52.8.

Brazil’s Industrial Business Confidence Index rose 2 points to 47.2 in May 2026, ending a three-month sequence of declines, though it remained below the 50-point threshold that separates optimism from pessimism. The Current Conditions Index increased 2.4 points to 42.9, reflecting improved assessments of both companies’ current conditions (+2.2 points to 46.3) and the broader Brazilian economy (+2.9 points to 36.1), although perceptions remained negative overall. Meanwhile, the Expectations Index rose 1.7 points to 49.3, moving closer to the neutral 50 mark and signaling less pessimistic views for the next six months. Expectations for the Brazilian economy increased 2.2 points to 40.9, while confidence regarding firms’ own outlook improved 1.5 points to 53.5.