Entrepreneur confidence in Cuiaba declines in October after consecutive months of rise

The survey that monitors the business confidence index (ICEC), in cuiaba, settled at 135.7 points in October, compared to 138.2 points in the previous month (-1.8%), interrupting a series of four consecutive increases. According to the Institute of Research and Analysis Fecomércio Mato Grosso (IPF-MT)Contrary to the national average which recorded the second consecutive month of decline, the capital of Mato Grosso It grew even in September, unlike the rest of the country.

The current result of the survey also shows that the index is 13.1% higher compared to October 2020 when it reached 120.1 points. Additionally, the survey reveals that commerce entrepreneurs are optimistic (with scores above 100) in September 2020, when they recovered from the worst moments they faced due to Covid-19.

Since then, the director of research at IPF-MT, Mauricio Munhos, explained that “some indicators that make up the Icec, such as those that measure the ‘level of corporate investment’, have continued to improve, noting that, in practice, the economy is growing.” In the monthly variance, this component rose by 3.4% and already totaled 117.7 points. Compared with the same period last year, the observed increase is 25.4%.

Regarding the current economy, the indicators of the survey, according to the president of Fecomércio-MT, José Wenceslau de Souza Júnior, reflect the risks of high inflation in the country, and therefore higher interest rates. Wenceslau Júnior stated: “The ‘current economic conditions’ component suffered a significant drop in October, i.e. the specter of inflation and higher interest rates create negative expectations and this is reflected in the level of confidence of the businessman.”

The drop in the component was 12% in monthly variance, reaching 98.5 points, and remaining in the dissatisfaction area on the part of entrepreneurs, highlighting complaints of unfavorable macroeconomic conditions for entrepreneurs. However, there was an improvement in the year-over-year comparison, going from 69 points to currently 98.5 points, up 42.7%.

The S do Comércio system consists of Fecomércio, Sesc, Senac and the IPF in Mato Grosso, and is headed by José Wenceslau de Souza Júnior. The entity is affiliated with the National Federation of Trade in Goods, Services and Tourism (CNC), which is under the leadership of José Roberto Tadros.