São Paulo - The July survey (the 152nd) by the Getulio Vargas Foundation's Brazilian Economic Institute (Ibre/FGV) of manufacturers (Indústria de Transformação) found that optimism with regard to growth in the near future was at 22 points, the highest since April 1995. The survey polled 945 businesses.

The business climate was considered good by 33% of the companies interviewed, compared to 11% that thought it was weak. The Ibre/FGV survey takes into consideration a series of factors, such as orders, profit margins and macroeconomic data (interest and exchange rates, for example).

The survey found that 18% of the businessmen interviewed said demand was strong, 73% said it was normal, and 9% said it was weak. A year ago, in July 2003, those numbers were 8%, 50% and 42%, respectively.

According to Aloísio Campelo, an FGV economist, the survey confirms a surge in domestic demand.

Agência Brasil
Reporter: Liésio Pereira
Translator: Allen Bennett
07/30/2004