The Conference Board Leading Economic Index® for Brazil, Together with Fundacao Getulio Vargas, Fell Slightly in June

News provided by

Jul 17, 2014, 10:00 ET

RIO DE JANEIRO, July 17, 2014 /PRNewswire/ -- The Conference Board Leading Economic Index^®for Brazil, together with Fundacao Getulio Vargas (TCB/FGV Brazil LEI), decreased 0.2 percent in June. The index now stands at 121.1 (2004 = 100), following a 1.8 percent decline in May and a 0.4 percent decline in April. Four of the eight components contributed positively to the index in June.

"The Leading Economic Index (LEI) for Brazil deteriorated further in June, with unfavorable expectations continuing to play a large role in the LEI's lackluster performance," said Paulo Picchetti, Economist at FGV/IBRE. "However, current economic conditions — as measured by the CEI — have remained relatively stable recently, with resilient labor markets offsetting the weakness of output. Moreover, the decline in the LEI during the first half of 2014 has not yet been as steep as during previous economic downturns."

Ataman Ozyildirim, Economist at The Conference Board, added: "The sixth consecutive decline in the LEI for Brazil points to weak economic conditions continuing in the second half of the year. Even though financial indicators improved in June, the deterioration in the overall performance of the LEI suggests that the current below-trend growth will continue through the end of 2014."

The Conference Board Coincident Economic Index^®for Brazil, together with Fundacao Getulio Vargas (TCB/FGV Brazil CEI), which measures current economic activity, declined 0.1 percent in June at 128.2 (2004 = 100), following no change in May and a 0.1 percent decrease in April. Three of the six components contributed positively to the index in June.

TCB/FGV Brazil LEI aggregates eight economic indicators that measure economic activity in Brazil. Each of the LEI components has proven accurate on its own. Aggregating individual indicators into a composite index filters out so-called "noise" to show underlying trends more clearly.

About The Conference Board Leading Economic Index^®for Brazil, together with Fundacao Getulio Vargas

TCB/FGV Brazil LEI was launched in July 2013. Plotted back to 1996, this index has successfully signaled turning points in the economic cycles of Brazil. The Conference Board also produces LEIs for Australia, China, the Euro Area, France, Germany, Japan, Korea, Mexico, Spain, the United Kingdom, and the United States.

The eight components of TCB/FGV Brazil LEI include:

Swap Rate, 1 year (Source: Central Bank of Brazil)
Stock Price Bovespa Index (Source: BOVESPA - Bolsa de Valores de Sao Paulo/ Sao Paulo Stock Exchange)
Manufacturing Survey: Expectations Index (Source: FGV/IBRE)
Services Sector Survey: Expectations Index (Source: FGV/IBRE)
Consumer Expectations Survey: Expectations Index (Source: FGV/IBRE)
Physical Production of Durables Consumer Goods Index (Source: IBGE - Instituto Brasilieiro de Geografia e Estatística/ Brazilian Institute of Geography and Statistics)
Terms of Trade Index (Source: FUNCEX - Fundacao Centro de Estudos do Comércio Exterior/The Foundation Center for the Study of Foreign Trade)
Exports Volume Index (Source: FUNCEX - Fundacao Centro de Estudos do Comércio Exterior/The Foundation Center for the Study of Foreign Trade)

https://www.conference-board.org/data/bcicountry.cfm?cid=12

To view The Conference Board calendar of 2014 indicator releases:
http://www.conference-board.org/data/

ABOUT THE CONFERENCE BOARD
The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501(c)(3) tax-exempt status in the United States of America.
www.conferenceboard.org

Follow The Conference Board
Twitter | Facebook| LinkedIn

ABOUT FGV/IBRE
The Brazilian Institute of Economics (Instituto Brasilieiro de Economia—IBRE) at Fundacao Getúlio Vargas (FGV) was founded in 1951 to research, analyse, produce and disseminate macroeconomic statistics and applied studies. Its purpose is to inform and help improve public policies and private activities in the Brazilian economy. IBRE is a leading institute in calculating the Brazilian GDP and producing price indices including the General Price Index (IGP) which served as Brazil´s official inflation index for many years. In addition to price indices, IBRE prepares trend and business cycle indicators that are widely used by administrators and analysts.
www.fgv.br/ibre

SOURCE The Conference Board