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Confidence Rises in BRIC Countries' Industrial Sector

KPMG report says manufacturers in Brazil, Russia, India and China show significantly more optimism than six months ago.

By John McCloud | Updated on September 02, 2009

Confidence appears to be returning to the industrial sector of the BRIC region encompassing Brazil, Russia, India and China. The summer 2009 KPMG Business Outlook Survey, which surveys around 1,800 manufacturing sector firms from the four countires, shows the net balance of increased business activity in coming months climbed sharply from +3.6 in January to +46.5 in July.

“BRIC manufacturing sector confidence appears to have swiftly returned to strength following the slump in confidence that ensued from last year’s global financial crisis,” observes Ian Gomes, chairman of KPMG’s High Growth Markets Practice. “Robust growth is widely forecast based on expectations of improving domestic demand, the success of government stimulus measures and signs of stabilisation in the world economy.”

The improved picture should come as good news to investors who own or are looking to buy industrial property in the BRIC nations. According to the report, the current reading nearly matches the +47% posted last summer, suggesting that output levels will rise at a marked pace over the next 12 months. KPMG says confidence is highest in Brazil, though firms in Russia and China also predict robust rates of expansion. Firms in India are much less upbeat than those in the other three countries, but confidence has still shown a clear improvement from January.

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