Brazilian industry grows more cautious as industrial confidence falls to 44.9
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Brazilian industrial confidence weakened further in September, with deteriorating economic sentiment weighing on the outlook for sectors that consume aluminum, including construction, transportation, packaging, and consumer goods.
The Industrial Entrepreneur Confidence Index (ICEI), released by the National Confederation of Industry (CNI), fell to 44.9 points in September from 46.3 in August. The decline marked the 21st consecutive month in which the index remained below the reference line.
The downturn reflected weaker assessments of both current business conditions and expectations for the next six months. The current conditions index fell from 42.7 to 40.2 points, while the expectations index declined from 48.1 to 47.2 points.
Brazilian economic sentiment weighs on confidence
Perceptions of the Brazilian economy were the biggest drag on the overall index in September. The corresponding indicator dropped from 36.6 to 33 points, representing the largest decline among the components assessed during the month.
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Business owners also became less positive about their own companies. The indicator measuring companies’ current situation fell from 45.7 to 43.8 points.
The weakness in expectations suggests that industrial sentiment remains under pressure beyond current operating conditions. The six-month expectations index fell by 0.9 points to 47.2.
For aluminum-consuming industries, the prolonged weakness in industrial confidence provides a challenging backdrop across areas such as construction, transportation, packaging, and consumer goods.
Confidence falls across four Brazilian regions
Industrial confidence declined in four of Brazil’s five regions in September—the North recorded the largest decline, with its ICEI falling 3.7 points to 44.3. In the Southeast, confidence dropped 1.9 points to 44.4, while the Central-West index declined 1.3 points to 48.6.
The South recorded a smaller 0.8-point decline, taking its ICEI to 42 points, the lowest reading among Brazil’s regions.
The Northeast was the only region to register an improvement. Its confidence index increased 0.3 points to 51.4, keeping it in the confidence zone while the other regions remained below the reference line.
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