Brazil: Consumer confidence rises in June -FGV

RIO DE JANEIRO, BRAZIL – The confidence of Brazilian consumers advanced in June to the best level since the middle of last year with an improvement both in the perception of the current moment and the future, according to data from Getúlio Vargas Foundation (FGV) released on Friday, June 24.

The FGV’s Consumer Confidence Index (ICC) rose 3.5 points in June to 79.0 points, marking the best result since the 81.8 reading seen in August 2021.

However, the polls coordinator, Viviane Seda Bittencourt, highlighted signs of much heterogeneity in consumer perception.

“Even considering the financial incentives package, the assessment of the situation at the moment by low-income consumers continues to worsen while their outlook for the coming months remains quite volatile, revealing high uncertainty,” she said in a note.

“As for consumers with higher incomes, they perceive an improvement in their financial situation and, for the second month, raise their intentions to buy, possibly due to the government’s stimulus,” she added.

In June, the Present Situation Index (ISA) advanced 1.3 points to 70.4, the best result since July 2021. The Expectations Index (IE), in turn, advanced 4.9 points, reaching 85.9 points.

With information from Reuters