According to Morgan Stanley & Co strategists led by Guilherme
Paiva, the outlook for Brazilian companies appears to be solid.
The firm launched the Brazil Corporate Outlook Index on
Wednesday, a barometer based on a quarterly poll of publicly
traded companies and the bank's equity research analysts.
The positive view in the MSBCOI, as the index is known, is
backed by positive sentiment towards business expectations,
advanced bookings and investment plans, all above the index's
neutral 50 percent threshold. Meanwhile, current hiring
conditions seem to be cooling down. The index had a reading of
55 percent in the first quarter. Roughly one-third of
respondents said business conditions improved during the
quarter, close to 25 percent of them said conditions worsened
and about 44 percent did not see material changes.
The vast majority of companies expect margins to either
improve or remain stable, despite inflationary pressures that
have appeared year-to-date, the bank said in a report.