Brasília, 28/4/2004 (Agência Brasil) - The National Industrial Confederation's (CNI) latest report on the economy shows that its activity index for the industrial sector for the months of January to March was 47, the best quarterly index since the year 2000. However, the CNI says it considers an index below 50 to be unsatisfactory.

The CNI report points out that the export sector did well with an index at 54.5. "If it hadn't been for exports the whole activity index would have been much worse," said the report.

In its report on the economy, the CNI declared that the heavy tax burden is the main problem for over 70% of Brazilian manufacturers. Other sector problems pointed out by the report are: weak demand, high interest rates, lack of working capital and payment default problems with clients.

The report said that in spite of the problems there was optimism regarding an improved situation over the next six months. With regard to employment, 60.5% of big companies said they thought employment would remain stable, while 28.1% said they believed there could be an increase in jobs.

Translator: Allen Bennett