Brazil’s economy took a big hit in 2015, especially in their industrial sector. Investors lost the confidence to invest there and many fled business in the South American country with the 5th largest economy of the whole world. Flavio Maluf is the CEO of the progressive Brazilian sustainable materials company, Eucatex. His company took a bit of a hit as well, most recently in August of 2016. But, even though his business was slow then, he already had predicted an upturn in the revenue performance of Brazil’s industrial firms.
Maluf’s prediction of better times was fully confirmed when Brazil’s Industrial Confidence Index (ICI) was published in September of this year. He says the result of this important economic tracking index has outperformed the gloomy outlook many of the naysayer analysts were claiming would be the case, counter to his positive predictions. The ICI had jumped up to 88.8 points in September. That is a big 2.1 percent increase that definitely indicates a much improved economy, even out to six months into the future. Those that know the history of Maluf’s savvy and oft accurate market predictions are quick to pay attention to what he has to say. Many a business and many an individual investor has benefited greatly.
The ICI is determined mostly from a set of official surveys that query the revenue performance for all of Brazil’s industries. Of those many companies surveyed, 63 percent reported higher profits than just a few months before. Thus, the 2.1 spike that was so sorely needed. The full ICI query process requires many samples of data over long periods of time. These surveys are conducted by the Brazilian Institute of Economics, which is part of the Getulio Vargas Foundation. Business leaders in Brazil, 1,120 in fact, were asked for their opinions. They generally responded that they saw signs of a better future. Perhaps they have been listening to Flavio Maluf’s sage predictions.