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Firms forecast growth of new business, output and employment in Brazil

Staff Writer | November 15, 2017
Private sector companies in Brazil are at their least optimistic about future business activity growth since mid-2016, reflecting a slide in sentiment among goods producers.
output and employment in Brazil
Brazil   IHS Markit Brazil Business Outlook
Nonetheless, confidence is the secondhighest globally, behind Ireland.

The latest IHS Markit Business Outlook survey also indicates that firms envisage new business growth to support greater corporate earnings and, in turn, job creation.

Cost inflation expectations have been revised lower and fewer firms (on balance) are planning to raise their selling prices than noted in the June survey period.

The anticipated rise in new business inflows is underpinned by beliefs that lower interest rates will support future investments, while companies also mention a more positive domestic economy.

Manufacturers predict greater inflows of new work from abroad and comment that new products will be brought into the market.

Services companies foresee greater inbound tourism, which they expect will be backed by favourable exchange rate movements, alongside stronger demand from internal clients.

Manufacturers and service providers expect new order growth over the coming 12 months, with sentiment stronger among the former.

This is despite confidence ticking higher in the service sector and dipping at goods producers.

As for output, optimism across the private sector as a whole is down to the lowest degree since June 2016 amid worries about political issues.


 

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