The Commerce Confidence Index (Icom), of Fundação Getulio Vargas (FGV) dropped 2.2 points in July, compared to June, and reached 95.1 points, on a scale from 0 to 200. The fall came after of two consecutive rises.
Entrepreneurs from four of the six segments of commerce surveyed by FGV had a drop in confidence.
The Present Situation Index, which measures confidence in the present, dropped 2.9 points to 105.6. The Expectations Index, which measures the perception of business in relation to the future, dropped 2.7 points and reached 84.8.
According to Rodolpho Tobler, an economist at FGV, the stimulus measures recently announced by the government should still sustain the current level of demand for a few more months.
Inflation and high interest rates, combined with low levels of consumer confidence, should hold back a more consistent recovery in the sector, he argued.
