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PPI panorama shows high prospects for industrial MSEs, but concern about tax burden and unfair competition. Confidence Index on the rise.
A small industry, characterized by employing between 20 and 99 workers, showed a significant recovery in its financial situation and performance stability in the last quarter of last year. These impactful results directly reflect on prospects and confidence for the year 2024, surpassing the historical average. The information was revealed by Industrial Business Confidence Index, which was released this Monday (5).
As industrial MSEs, also known as small industries, are extremely important for the country's economy. A solid financial situation and stable performance of these companies directly contribute to the growth and development of the industrial sector as a whole. Therefore, the recovery seen in the last quarter of last year is a positive sign not only for small industries, but also for the national economy as a whole.
Increased business confidence in small industry
The search of National Confederation of Industry (CNI) revealed an increase of 0,7 points in the Industrial Entrepreneur Confidence Index (ICEI), reaching 51,2 points. This increase indicates growing confidence, reflecting positive expectations for the next six months.
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Favorable prospects for industrial MSEs
The Small Industry Outlook Index advanced 2,3 points, reaching 49,4 points in January 2023. This shows that businesspeople have more optimistic perspectives than normal for the period. This indicator takes into account the expectations of industrial MSE entrepreneurs in relation to the evolution of demand, expected growth in the number of employees and investment intentions.
Challenges faced by the small manufacturing industry
The heavy tax burden continues to be the main challenge for small manufacturing industries, with registrations increasing from 38,8% to 41,6% in the last quarter of 2023. Unfair competition is also a major concern for these companies.
Insufficient domestic demand and unfair competition are other factors that weigh on the manufacturing industry. In the construction industry, the tax burden has become the main problem, closely followed by the lack or high cost of qualified workers and high interest rates.
Stable financial situation for industrial MSEs
The Financial Situation Index for small industries advanced 0,8 points in the fourth quarter of 2023, reaching 42,2 points. This result indicates an improvement in the financial situation for small industries, keeping the index above the historical average of 38,4 points.
Small Industry Panorama: indicators and analysis
O Small Industry Overview encompasses four main indicators: performance, financial situation, prospects and confidence index, all ranging from 0 to 100 points.
These indices take into account several factors, such as production volume, number of employees, use of installed capacity, satisfaction with operating profit, financial situation, ease of access to credit, expected evolution of demand and investment and hiring intentions. .
The research is released quarterly based on the analysis of small industry data collected in Industrial Survey, and on Construction Industry Survey and Industrial Entrepreneur Confidence Index (ICEI), listening to around 900 small business owners.
Source: Industry Portal
