Flavio Maluf, President of Eucatex, Weighs in on the Economic Position of Brazil

Going by the data released by the Industry Confidence Index (ICI) in 2015 and partly in 2016, the Brazilian economy was in bad shape. There was a clear indication that entrepreneurs in the country had little confidence in the economy. In the middle of all that, Flavio Maluf, president of Eucatex, was optimistic that the economy would soon be back on its feet. In October last year, Flavio reported that ICI was showing a change of attitude amongst entrepreneurs. He exuded confidence in that the country’s economy was on the verge of a resurgence.

 

According to Flavio Maluf, the ICI in Brazil for the month of July last year stood at 87.1 percent. Even though the index dropped to 86.1 percent in August, it rose again to 88.2 percent in September. Flavio said that this was a clear sign that glory days for the Brazilian economy were near. He further revealed that the September confidence index was higher than it was in 2015.

 

The Index of Expectations (IE)

 

Looking at the Index of Expectations (IE), on the other hand, Flavio reported that it was high than the ICI. For July 2016, the index was at 89.8 percent points, which was the highest in over two years. The Current Situation (TCS) increased by 1.5 points in July 2016 compared to the same time in the previous year. Factoring in the increment, the index stood at 86.7 percent points, which was the second highest from the 88.4 percent points of January 2015. This data is as released by Flavio Maluf.

 

The Capacity Utilization Level (CUL)

 

Flavio Maluf also interrogated the Capacity Utilization Level (CUL) in Brazil. His findings were that the index had increased by 0.9 points from August’s 73.8 percent to 74.7 percent. In his evaluation, he reported that that index was the highest in close to two years.

 

The Stock Market

 

Despite the improvements made in the Brazilian market, a few teething underlying issues caught Flavio’s eye. He was concerned by a reduction in the number of entrepreneurs who were comfortable with the situation in the stock market from 14.1 percent to 12.7 percent. That notwithstanding, Flavio Maluf noted that the number of managers who thought that the stock market was insufficiently stocked had risen to 7.3 percent, which was the highest since May 2013.

 

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