Recently, Flavio Maluf predicted that Brazil’s slowed economy would soon rebound. His seeming prescience was confirmed by the Brazil’s Industrial Confidence Index (ICI) in September. The ICI is a very relevant measure of the actual status of Brazil’s massive economy. As Maluf had surmised, the ICI result had increased 2.1 percent, leading to an overall score of 88.8 points. This was not news to him, but to all the negative predictors it was nirvana. That big of an increase, which occurred in only a few months, paints a rosy picture for the next 6 months.
This is very good news for Brazil, as their economy fell precipitously in 2015. This was mostly centered in a slowdown of Brazil’s industries. When that happened the local and international investors ran away from their support of that sector in the economy. Brazil is a major industrial company with the 5th largest economy in all the world.
The process to arrive at an accurate ICI number involves several steps by the authority that produces it, the Getulio Vargas Foundation’s Brazilian Institute of Economics. They perform serious industry surveys to measure economic progress or regression.
Flavio Maluf Founded Eucatex to support sustainable construction and manufacturing with materials from Brazil. When the downturn came in August, 2016, it hit Eucatex as hard as any other industrial company. Nevertheless, even though the downturn was present, Maluf saw indications of a positive trend already starting to occur. Of the 1,120 business leaders surveyed, a full 63 percent declared improved profitability as of September, 2016.