Brazil's Industry Confidence Index (ICI) dipped to its lowest in 10 years to 74.7 points in December, down 11 percent from the 83.9 points in November, a study by a leading Brazilian institute said on Tuesday, Xinhua reported.
The Getulio Vargas Foundation (FGV) said the index's level, the lowest since October 1998, also sharply contrasted with 116.7 points in December last year.
According to the FGV study, the results consolidate the scenario of the country's shrinking industrial production in the fourth quarter of 2008 from that of the previous quarter.
Under a global economic recession, the Brazilian index fell by 19.6 percent in November and by 9.2 percent in October.
The ICI is composed of both the Current Situation Index (ISA) and the Expectations Index. The ISA fell to 76.1 points from 85.3 points in November and from 122.6 points in December 2007. The Expectations Index fell to 73.3 points from 82.5 points in November and 110.8 points in December 2007.
Meanwhile, the number of Brazilian companies holding pessimistic perspectives has increased to 43.7 percent in December from 26.4 percent in November, due to decreasing demands from the market, said the study.
Only 13.6 percent of the local companies found current market demand good, said the study which surveyed 1,086 companies.
The study also found that 24.7 percent of Brazilian companies intend to increase production in the next two months and 33.8 percent intend to reduce production.
It is the worst result for that issue since January 1991, when 43.7 percent of the companies intended to reduce production, said the study, which was conducted between Dec. 1 and Dec. 23.