Brazil's Industrial Entrepreneur Confidence Sinks to Lowest Level Since June 2022 Amid Ongoing Economic Uncertainty

Brazil's industrial entrepreneur confidence index has plummeted to its lowest level in over two years, according to data released by the Central Bank of Brazil on Monday. The index fell to 48.6 in June 2025 from 48.9 in May, signaling a continued pessimistic trend that has characterized the first half of the year.

The primary driver behind this decline was worsening expectations about the Brazilian economy, leading to an increase in uncertainty among industrial entrepreneurs. This trend is reflected in the Expectations Index, which dropped by 0.4 points from May's value of 51.3 to 50.9 in June.

Industry experts point to growing skepticism about national economic prospects as the key factor behind this pessimistic outlook. The Brazilian Economy Expectation Index fell a measly 0.8 points to 41.7, signifying an almost palpable sense of unease among entrepreneurs.

In contrast, the Business Expectations Index showed a more modest decline of 0.3 points from May's value of 55.5 but remained well above the neutral mark, indicating that while economic expectations remain concerning, some entrepreneurship-related optimism still lingers.

The Current Conditions Index, which measures the perceived state of Brazil's economy and businesses, also exhibited little change at 44.1 in June, nearly identical to its May reading of 44.

When delving into specific sub-indexes within these broader indices, we find that many segments are experiencing relatively stable yet still concerning conditions, with a Current Conditions index score of 37.4 and Business Sub-Index score of 47.5 both maintaining precarious but hardly altered positions compared to their previous readings (both at 53 respectively.

Overall, Brazil's industrial entrepreneur confidence index is the strongest indicator of the country's economic trajectory.