Brazilian commerce confidence slips as industry optimism improves

The confidence index for merchants in Santa Catarina fell to 91.7 points in May 2026, marking the fourth consecutive month of decline and a 1.4% drop from April, as well as a 10.7% year‑on‑year decrease. Fecomércio SC linked the slide to heightened caution over recent economic and regulatory changes, including new labor‑rule discussions.

At the national level, the FGV‑IBRE Industry Confidence Index rose by 3.0 points in June 2026 to 100.1 points. Economists attributed the gain to reduced uncertainty from the Middle‑East conflict and recent easing of oil prices, though they warned that high interest rates and persistent inflation still constrain industrial demand for the second half of the year.