Impacted by the political scenario, trust services fell 2.8 points in June

The Confidence index of services (ICS) fell 2.8 points in May to June, passage to 81.9 points, in series with seasonal adjustment, according to the Getulio Vargas Foundation (FGV) on last Friday.
In may, there was high of 0.5 point. The fall in June was the highest since September 2015, when indentation was of 3.0 points. According to the FGV, the negative performance in the month due mainly to the worsening expectations ". The Expectations index (IE-S) in the sector fell 5.2 points, while the Current Situation index (ISA-S) ceded only-0.4 point. "The intensification of the trend of expectations setting, which had been observed since the beginning of the second quarter, was most likely influenced by the turbulence in the political environment from May 17. The reviews about the current situation were also affected, with the index breaking off a three-month high, "says the memo leaked by FGV
According to the entity, the main contribution to the fall of IE-S in June was given by the indicator which measures the expectations for the "demand within three months", which retreated 5.3 points to 84.7 points. The largest contribution to the fall of ISA-S came from the Current Business Situation indicator (-0.7 point, to 78.3 points).
The worsening of confidence was widespread, with decline in ICS in nine of the 13 activities surveyed. The Capacity utilization (Nuci) service sector fell 0.9 percentage point in June compared to may, to 81.5%, the lowest level of the historical series.
Among the factors that have been cited as a barrier to business activity, the question "insufficient Demand" continues leading complaints, having been appointed by 39.4% of the companies in June. In second place comes the response option open ("other factors"), marked by 33.5% of companies.
According to the FGV, the sort the answers free of "other factors" in two broad categories, "Economic Climate" and "political climate", "there is a strong indication of the influence of the political environment in the evaluation of companies over the course of the business".
To quote the political climate as a limiting factor outweighs, for the first time since October 2014, election period, the economic climate, which reinforces the interpretation that the worsening of expectations is related to the events of May 17, "says the note, with this, the Foundation speaks in a first half marked by weak activity and worsening of expectations.