Trade confidence falls and returns to the level of September 2018

The index that measures the confidence of the trade declined 5.4 points in May, from 96.8 to 91.4 points, returning to the same level of September 2018, according to Fundação Getulio Vargas (FGV). Trust has fallen into 11 of the 13 segments. The decrease in the index occurred both in the expectations and in the indicators of the present moment. The index of expectations returned to record value below 100 points (94.8 points in greater) when dropping 6.6 points, worse value since September 2018 (93.2 points). The situation index has declined 4.0 points to 88.3 points, lower value since January last year. According to Rodolpho Tobler, coordinator of the Trade Survey of FGV IBRE, the return of confidence recovery still depends on the reduction of uncertainty levels, the most positive numbers of the labour market and the resumption of consumer confidence. "The new expressive decline in trade confidence suggests that industry entrepreneurs are still encountering difficulties with the pace of sales in the second quarter. The current situation indicators reflect the poor performance of the activity at the beginning of 2019. At the same time, entrepreneurs continue to review their expectations, resulting from a frustration with the scenario presented so far, "he says. Limiting factors According to the research, political factors are limiting the improvement of the sector's business environment and lead companies to be cautious when planning the coming months. The percentage of companies citing political factors as a limitation stood at 6.7%, the largest since last October, when it recorded 9.4%, the time of the presidential elections in the country.