Access to credit was the most difficult for small industries in 2022, says CNI

Data from the Panorama da Pequena Indústria (PPI) released by the National Confederation of Industry (CNI) in this second fair (30) show us four indicators that analyze the performance of micro and small Brazilian industries in the last quarter of 2022: performance, financial situation , confidence and perspective.

Meanwhile, despite the regression, the indicators remained above the historical average. Furthermore, among the main problems in the last months of last year, businessmen reported dissatisfaction with access to credit and with the legal tax.

According to the CNI Policy and Industry analyst, Paula Verlangeiro, in the last three months of 2022 it was a seasonal challenge and, still, it was more branding than what was observed in the historical average of the period. “This remains after a third quarter of positive performance for the small industry”, she notes.

The Performance Index dated the fourth quarter of 2022 with 44.3 points. When compared with the same period of the previous year (47.4 points), the indicator shows a reduction of 3.1 points. A historical average is 43.8 points.

The survey also shows a change in the ranking of two main problems of the sector. After two years, oscillating between the three main problems, due to the lack or high cost of raw material, it ceased to be the main inconvenience.

In the last months of last year, the businessmen will claim more than the high tax burden and the legal taxes. Other challenges that will be highlighted in the period are insufficient internal demand, excessive bureaucracy, unfair competition and difficulties in transport logistics.

Access to credit

A point that calls attention in the research is the Financial Situation Index, which showed a slight fall between November and December 2022, of just 0.7 points, dating the year with 43 points. When compared to the same quarter of 2021, this year there was an increase of 1 point.

Entrepreneurs in three sectors (construction, transformation and extractive) declared that they were more dissatisfied than before with their access to credit. For the CNI, getting the money is essential for the performance of the MPEs, whether for restructuring or for the expansion of two businesses.

The manager of Economic Policy of the CNI, Fábio Guerra, says that the credit market scenario is challenging due, mainly, to legal taxes. “Knowing the information involved in this process may be decisive in the success of the credit contracting and the conditions of the contracting, in terms of legal tax, deadlines, deficiencies, guarantees, among other points.”

Another indicator of the survey, or confidence, also presented in the last quarter of 2022 and registered 48.8 points. This is the first time, since July 2020, that industrial MPEs report a lack of trust. According to the report, this may influence their decision-making when making investments and future contracts.

The CNI bets that the prospects for the coming months are also below the 50-point line.