The Agribusiness Confidence Index (ICAagro), calculated by Fiesp, closed the second quarter at 110.3 points, down 9.6 points from the same period last year, driven by concerns about an economic slowdown, high interest rates and with rural credit, informed the entity this Tuesday (2).
The indicator also dropped 1.2 points compared to the performance obtained in the first three months of this year, the data showed.
Even so, the ICAgro remains at an optimistic level, as it is above 100 points – below that, the confidence level is considered pessimistic, according to the study’s methodology.
The index is composed of the segments “before the gate”, which includes the input industries, “agricultural producer” and “after the gate”, which includes the perception of the economic scenario, for example.
Among the segments measured, the most significant drop was identified in the category “agricultural producer”, which reached 106.3 points in the second quarter, versus 121.7 points a year earlier.
“The increase in pessimism in relation to credit was marked both among ranchers and farmers. In the first half, the release of funding for funding fell 17% compared to the same period last year – a significant squeeze, even more so when considering the rise in production costs,” said the study.
In the “before the gate” segment, the indicator stood at 109.8 points, below the 117.1 seen a year earlier, but above the 107.7 points of the first quarter.
“In the first quarter, there was a concern that fertilizers could be lacking, especially after the start of the war in Ukraine and the imposition of economic sanctions on Russia, in addition to fears regarding pesticides, which faced the disorganization of production chains in important producing countries. , like China”, stated in a note the director of the Agribusiness Department at Fiesp, Roberto Betancourt.
He said that this fear subsided as Brazil managed to maintain imports of fertilizers and still achieved record volumes in purchases in the first half.
As for the “after the gate” industry, the indicator reached 114.5 points, against 119.1 in the second quarter of last year and 117.4 in the first three months of 2022.
“The scenario of rising inflation and interest rates threatens consumption indicators, which is worrying in sectors such as food.”
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
