BUSINESS CONFIDENCE

BUSINESS CONFIDENCE

Businesspeople registered the second consecutive rise in October (2.7%) from 115.3 points in September to the current 118.4. Compared to the same period last year, the increase was even higher, 15.4%. Thus, there was also warmth in the intentions of entrepreneurs when making new hires. In addition, the Trade Expansion Index (IEC) rose 5.8% in October - 111.7 points from 105.6 the previous month, the highest level since January 2014. Compared to October 2018, the increase was 17.9%.

According to the Federation of Trade in Goods, Services and Tourism, these positive results reflect the fall in interest rates, with a trend of further reduction with the approval of the Pension Reform. As a result, the intention to generate employment (7.2%) and invest (3.7%) increase, as with lower interest rates the debt-to-GDP ratio is stable.

One of the highlights of October was the hiring of employees, which posted its second high in a row, rising from 122.9 points in September to 131.8 in October, reaching the highest level since January this year and the highest score recorded. for the months of October since 2013.

With this improvement in the economic scenario, financial institutions have been releasing more credit, and the recommendation to the businessman, now, is to convert sales from the booklet to credit card, says the Entity. The moment is to take advantage of the offers of the machines that have been charging lower rates and advance payments, thus keeping the cash flow turning.

Trade is expected to close the year with better numbers than in 2018, however, Fecomercio suggests caution about the dollar swing for companies that work with raw materials and imported products. The tip is to try not to pass on increases to consumers, even if you need to reduce the profit margin.