FGV employment indicator advances 4.5 points in April

Micro and small entrepreneurs maintain optimism for the fourth consecutive month

The optimism of micro and small business owners remains on the rise for the fourth consecutive month. According to the Brazilian Micro and Small Business Support Service (Sebrae), the micro and small business confidence index (IC-MPE) increased 1.8 points in May, reaching 98.1 points, the highest level since October 2021, when it indicated 98.9 points. The data are part of the Economic Survey of Micro and Small Companies, carried out in partnership with Fundação Getulio Vargas (FGV).Micro and small entrepreneurs maintain optimism for the fourth consecutive month

In Sebrae’s assessment, the greater movement of people, after two years of confinement due to the covid-19 pandemic, the improvement in sales performance, as well as the extension of the National Support Program for Micro and Small Businesses (Pronampe ) until 2024, weighed on the positive perception of entrepreneurs.

“The continuous recovery of confidence was observed in all the sectors surveyed: commerce, services and the manufacturing industry”, said Sebrae.

Among the sectors, trade was the most prominent. After registering a drop in April, business confidence in this segment rose again in May. The index increased by 5.5 points, closing the month at 91.4 points, the highest level since October 2021 (92.9 points).

In the service sector, the transport activity was the one that stood out the most. Another sector that gained space was professional services and services provided to families. The manufacturing industry, on the other hand, remained at a neutral level, but with emphasis on clothing, which brought a positive confidence index.

According to the president of Sebrae, Carlos Melles, the mood of businessmen was influenced both by the current situation and by short-term expectations. Melles, however, considers that caution is still needed.

“Even with this scenario of improvement in the spirit of companies, parsimony must always prevail, as we still face conjunctural problems, such as the scarcity of inputs, forecasts of high inflation and interest rates”, he argued.

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