Brazilian companies most optimistic since mid-2014
A net balance of +57% of companies forecast higher output in the year ahead, compared with +47% in the previous outlook survey and a global average of +19%.
Positive sentiment is stronger in both the manufacturing and service sectors, with the respective net balances rising to +61% (highest since February 2014) and +55% (near two-and-a-half year high).
Panellists highlight political stability, new product launches, innovative partnerships, hopes of an economic turnaround, expansion into new markets, investment opportunities, lower borrowing costs and export prospects as the key opportunities for growth.
On the other hand, budget cuts, exchange rate movements, aggressive competition, high tax rates, strong inflation, climate change and lower employment levels are seen as possible threats to the outlook
In line with foreseen growth of new business and output, Brazilian companies expect profits and revenues to increase over the course of the next year.
At +55% in October, the net balance for business revenues is at its highest level since mid-2014 and points to the strongest degree of confidence of the four BRIC nations.
Degrees of optimism at manufacturers and service providers are broadly similar. ■