Despite the growth, the index used to measure this metric is below the historical average
Small businesses in the industrial sector saw an improvement in confidence in the 4th quarter of 2023. A report from CNI (National Confederation of Industry) indicates an increase of 0.7 points in the Industrial Business Confidence Index – which takes into account the expectations of businesspeople in the sector.
The indicator rose to 51.2 points in the last 3 months of the year. The metric ranges from 0 to 100. Values above 50 points indicate a trend of confidence in the analyzed segment. Here's the complete of data (PDF – 737 kB).
Despite the increase in the final stretch of 2023, the index is slightly below the historical average of 52.8 points. Read below how the results evolved:
FINANCIAL SITUATION
The survey also measured the financial situation of small businesses in the industry. The result for the 4th quarter of 2023 increased by 0.8 percentage points – from 41.4 points in the previous quarter to 42.2.
The index is calculated based on 3 factors: operating profit margin, financial situation and access to credit.
The result can be considered positive as it is above the historical average of 38.4 points.
The result is explained, according to the CNI, because of “less dissatisfaction with the financial situation and a less negative perception of the difficulties in accessing credit”.
Small industrial businesses are those that employ 20 to 99 workers.
The analysis considers some industry-specific factors, such as production volume and use of production potential based on factory capacity. It also takes into account the jobs created by the sector. In practice, the higher the performance, the better.
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