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Industry confidence in Brazil drops to lowest level since January

Source: Xinhua| 2018-08-29 13:04:01|Editor: Li Xia
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RIO DE JANEIRO, Aug. 28 (Xinhua) -- Brazil's industry confidence dropped by 0.4 point in August, reaching the lowest level since January due to internal and external uncertainties, a think tank said Tuesday.

The Getulio Vargas Foundation (FGV) reported that the Industry Confidence Index (ICI) hit 99.7 points in August. The index spans from 1 to 200 points with 100 points being considered neutral.

According to the FGV, 11 of the 19 industries it analyzed showed a lack of confidence.

In January, the indicator once touched 99.4 points.

"The scarcity of good news and good results, and elevated uncertainty maintained by internal and external doubts, means that the recovery of confidence is still a long way off," the FGV said.

The drop in August was partially caused by the 1.1-point decline in the Current Situation Index (ISA), which reflects experts' analysis of the current situation.

However, the Expectations Index (IE), which evaluates forecasts for the next six months, remained at a neutral level, climbing 0.3 point to reach 101.4 points.

Brazil is slowly recovering from the country's economic crisis that struck between 2015 and 2016.

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