Brazil Business Confidence Starts 2022 Lower

The industry confidence indicator in Brazil ticked down 0.7 points from the prior month to 56 in January of 2022. It was the lowest level recorded for the same month since 2018.

In January 2021 confidence indicator was at 60.9 and in January 2020 the indicator was at 65.3. Still, it remained above 50 indicating that the industry remains positive. Among its components, the perception of current conditions slipped 0.4 points to 49.6, and futures expectations decreased by 0.9 points to 59.2

Brazalian Stocks Volatile:

The main Sao Paulo stock index, Bovespa, swung between gains and losses on Thursday, as investors contemplated the implications of monetary policy tightening and the Omicron variant on the global economy. Domestically, fiscal concerns persist amid pressure for salary readjustments for civil servants.

On the data front, Brazil’s services activity returned to positive territory after two months in November and exceeding market expectations. In corporate news, Brazilian chicken and pork processor BRF announced it signed a memorandum of understanding with Saudi Arabia’s sovereign fund to create a joint venture to make poultry products in the Middle Eastern country.

Source : Trade Economics