It looks like 2019 will be a better year for productive investment than previously thought, according to a closely watched annual survey of manufacturers by the São Paulo Federation of Industry (FIESP). The report surveyed 447 manufacturing companies all over Brazil. It showed that 67.8% of companies intend to make investments in plant and equipment in 2019, versus just 57.0% in 2018. Furthermore, companies investing said they will dedicate an average of 4.2% of revenues to investment this year, up from 3.4% in 2018. Total investments by the companies are expected to reach R$143 billion, up 27% from last year. The report said companies are investing in new technologies destined to reduce their costs. They are replacing outdated equipment. They are motivated by hopes for important fiscal reforms from Congress this year and a more robust economic recovery in 2019 than they witnessed last year.
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