FX.co ★ Brazil Industrial Sentiment Remains Weak

In May 2025, Brazil's Industrial Entrepreneur Confidence Index (ICEI) edged up to 48.9, a slight improvement from April's 48. While this upward trend indicates diminishing pessimism among industrial firms, the index has still not surpassed the neutral 50 mark, marking the fifth consecutive month below this level. The improvement is attributed to emerging signs of economic recovery and a weakening US dollar, despite the persistently high domestic interest rates. Looking ahead, business performance expectations for the upcoming six months have seen a modest increase, climbing to 51.3 from April's 50.7. More notably, broader economic expectations experienced a sharper rise, advancing to 42.5 from a previous 41.1. Evaluations of the current business climate have also shown signs of positivity. Confidence in the current business environment increased to 47.3, up from 46.6, and sentiment towards the Brazilian economy rose to 37.3, compared to April's 34.8.