London: Manufacturing firms in the world’s four leading emerging markets have become increasingly optimistic about future demand, with confidence highest in Brazil, a survey showed on Monday.
Accountants KPMG said its twice-yearly survey on manufacturing sentiment in the so-called BRICs (Brazil, Russia, India and China) showed a large jump in expectations for business conditions.
Its overall index showed a net balance of 46.5% of firms expecting improvement compared with just 3.6% doing so in January. Anything above zero indicates optimism.
KPMG also said a net balance of 44.8% of firms predicted higher new orders versus 4.9% in January.
Consequently, business revenues are set to increase strongly, it said.
“The BRIC manufacturing sector appears to have swiftly returned to strength following the slump in confidence that ensued from last year’s global financial crisis,” Ian Gomes, chairman of KPMG’s High Growth Markets Practice, said in a note.
“Robust growth is widely forecast - based on expectations of improving domestic demand, the success of government stimulus measures and signs of stabilization in the world economy.”
The survey, which reflects responses from about 1,000 manufacturing firms in the four countries, found that India was the least optimistic market with 38.5% of respondents expecting higher business activity versus 16.0% expecting deterioration.
The remainder either expected conditions to stay the same or said they did not know.
Brazilian manufacturers were the most optimistic among the BRICs, with 67.8% seeing improvement to just 2.9% expecting a slide.
Optimistic Russians outweigh pessimists over improved business activity by 55.7% to 6.0%. The figures for China were 55.3% to 8.7%.