The Industrial Entrepreneur Confidence Index (ICEI) dropped 1.1 points, from 49.9 points to 48.8 points, between March and April this year. The survey by the National Confederation of Industry (CNI) shows that, with the fall, the indicator is even further away from the 50-point dividing line, a mark that indicates that businessmen in the industry demonstrate a more intense and widespread lack of confidence. 1,548 businessmen were interviewed between April 3rd and 11th.

In the assessment of CNI economist Cláudia Perdigão (photo), the result reflects the pessimism of entrepreneurs about current conditions, which fell to the worst level of the entire post-pandemic period.

“The industry is on hold, with a drop in demand, caused by high interest rates and the high level of default and family debt”, explains Cláudia.

According to her, even if the beginning of the fall in the basic interest rate is expected in the second half, the Selic will play an additional restrictive role on the pace of industrial production throughout the year. This fact will result in less flexibility in the credit environment and in greater difficulty in obtaining financing, both for companies and for individuals.

The Current Conditions Index dropped 1.7 points to 42.5 points. By falling further below the 50-point dividing line, the index demonstrates a stronger and more widespread perception of the industry's worsening of the current conditions of the Brazilian economy and companies. The assessment of current conditions is the most negative since July 2020, a period when the Brazilian industrial sector was still suffering from the shutdown of the economy due to the covid-19 pandemic.

The Expectations Index also fell, retreating 0.8 points, to 51.9 points. By remaining above the 50-point dividing line, the indicator continues to demonstrate optimism in the industrial sector in relation to the next six months. The industrial entrepreneur's optimism, however, is restricted to his own company, while expectations about the Brazilian economy remain negative.