Small Industries Suggest Improvement but Remain Pessimistic

The latest data from the Panorama da Pequena Indústria (PPI), released by the Confederação Nacional da Indústria (CNI), indicate a slight improvement in the performance of small industries, yet a long way remains. The performance index for these firms increased by 1.5 points in the second quarter of 2023 to reach 45.2 points, an improvement over the first quarter but still below historical averages at 43.1 points. According to CNI, this increase was partial and insufficient given the challenges faced by small industries, including high tax burdens, elevated interest rates, shortages in raw materials, expensive labor, and unfair competition. The financial health index of these companies also showed a slight improvement with an increase of 0.4 points to 39.4 points, reflecting better access to credit and improved financial comfort for the business owners, but significant challenges remain.