São Paulo trade provides for resumption of Expansion

According to the expansion of Trade Index (IEC)-survey conducted by the Federation of trade in goods, services and tourism of the State of São Paulo (FecomercioSP), increased the interest of entrepreneurs in the São Paulo trade to expand their business, registering the fifth consecutive month. In September, the indicator reached 78.7 points, up 1.1 percent compared to August and 17.8% in comparison to 2015. Responsible for increasing IEC is due to high expectations also for hiring employees who dyed 97.1 points, up 2.8 percent on a monthly comparison and 29.3% in relation to same month of 2015. However, the level of business investment, which also makes up the IEC recorded 60.3 points, down 1.6 percent compared with August, however, 3.1% higher compared to September of last year.
Number of Layoffs Increases the room for Hiring
According to FecomercioSP, this difference between the two subitems stems from the fact that in terms of physical capital, retail companies still don''t think booming, but given the large number of layoffs there''s room for signings before the effective resumption of the expansion projects, new stores, etc. Anyway, the organisation points out that the September numbers are good news and, with the definition of the political scenario, also new investment bets should be resumed slowly. In the long run, according to the Federation, the curves of investment and hiring will be strongly correlated. A possible increase in hiring (or reduction of layoffs) at the end of 2016 will enable accelerate investment projects in 2017. The FecomercioSP points to the fact the sector indicate that he will be giving first their enormous contribution and display its confidence in the economy of the country.