Brazil's Industrial Confidence Index fell to 47.4 points in January, the lowest level since January 1999, according to a study released on Tuesday by the National Industry Confederation (CNI).

The figure was down from 52.5 points in October and 61.8 points for the same period last year.

It was also the first time since 2002 the index has fallen below 50 points, which indicates that Brazilian industrialists are pessimistic about the future impacts of the international financial crisis on the industrial sector.

According to the CNI, lack of confidence will affect investment and the demand for raw materials.

The CNI said a deceleration in the industry's activity level can be expected, as well as in the economy in general.

The study said large and medium-sized companies registered a lower confidence index of 45.3 and 47.3 points respectively. The most pessimistic were the auto, paper and cellulose sectors, registering 39.8 points and 40.3 points respectively.

The current business situation in the country also registered a sharp fall, down from 50.5 points in October to 36 points in January.

The National Industry Confederation consulted 1,407 companies from January 5 to 26, including 749 small companies, 444 medium and 214 large companies.

(Xinhua News Agency January 28, 2009)