Itaú BBA - Optimism, with caution

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Optimism, with caution

December 10, 2018

Most sectors are more optimistic about the future, but still assessing next steps with caution.


For the version with all texts, please open the attached pdf file
 

With information through December 10, 2018

This report summarizes anecdotal information on current economic conditions received from key contacts, economists, market experts and other sources outside Itaú. Apart from the 'our view' section, it does not necessarily reflect views of Itaú's Macroeconomic Research team.

Contents:

Consumption and production of goods and services
Companies report some acceleration, albeit timid, in mid-September and October, intensifying in November.

Investment
Most sectors are more optimistic about the future, but still assessing next steps with caution.

Labor Market, Production costs and prices
Industry recovery may boost hiring ahead.

Real estate
Falling inventories across the country, with the exception of Rio de Janeiro.

Agricultural sector
We see appetite for investment and an outlook of expansion in cotton and soybean planted areas.

Our View
We increased our GDP growth forecasts for 2019 to 2.5%, incorporating more expansionary financial conditions. However, we emphasize that this more favorable scenario directly depends on the implementation of reforms, particularly the pension reform.

 

For the version with all texts, please open the attached pdf file
 



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