Industry confidence drops in June to the lowest level since January, according to FGV

São Paulo – Assessments of the current situation showed a sharp deterioration in June, and Brazilian industry recorded a decline at the lowest level since the beginning of the year because of the effects of the strike

With a 1.0 point decline, the Industrial Confidence Index (ICI) ends the month with 100.1 points to May, level

"The discontinuity of road freight transport between late May and early June increased finished goods inventories and reduced stocks of inputs s, affecting costs, production, capacity utilization and trust, "says Tabi Thuler Santos, coordinator of the FGV / IBRE Industry Survey

. The current situation index (ISA) is responsible for the decline in the June reading of the industry's confidence to decline by 5.5 points, to 95.1 points, the lowest level since September 2017 (90.8).

On the other hand, the index of expectations (IE) 4 points and reached 105.0 points, the highest level since May 2013 (105.4 points). However, Tabi pointed out that this move could be a temporary effect, "influenced by the basic effect of the poor performance of the sector in May."

The level of utilization of installed capacity has to it suffered its first decline since September 2017 down 0.3 percentage point from May to 76.2%.

Confidence in June was shaken largely because of the truckers' strike at the end of May, which affected food, fuel and other supplies

Brazilian industrial production slowed rose by 0.8% in April compared to the previous month, a result higher than expected, but at a rate that is threatened after the truckers strike.

In addition to the economic crisis activity was affected by the closure, the country is experiencing a scenario of uncertainties in the October presidential election.