Brazilian Industrial Confidence Hits Five-Year Low Amid High Rates and Slowdown

INSUBCONTINENT EXCLUSIVE:
industry confederation, dropped to 48 points in April 2025.This marks its lowest level since July 2020 and signals a clear lack of
confidence among business leaders
The index, which surveys 2,500 companies, fell from 49.2 in March and now sits well below the neutral 50-point mark that separates optimism
from pessimism.Industrial firms cite persistent high interest rates and a stronger US dollar as key obstacles
investment.Broader economic expectations also deteriorated, with the relevant index falling to 41.1 from 43.0
grew strongly in early 2025, thanks to a rebound in agriculture
However, growth is projected to slow from 2.5% in the first half to 1.5% in the second half.Brazilian Industrial Confidence Hits Five-Year
Low Amid High Rates and Slowdown
(Photo Internet reproduction)Industrial production remains mixed: machinery and automotive sectors show resilience, but extractive and
textile industries contract
The manufacturing PMI remains above 50, indicating expansion, but new orders and output are losing momentum.Inflation expectations for 2025
stand at 5.57%, and the Brazilian real continues to weaken against the dollar
Despite these headwinds, some sectors, such as capital goods and durable consumer goods, still find opportunities.The overall outlook
remains cautious as businesses brace for tighter financial conditions and global trade uncertainties.