Brazilian consumer confidence index reached a new high in August for the third month in a row

In August, Brazilian consumer confidence reached a new high on improved expectations for the coming months, the Getulio Vargas Foundation (FGV) reported today (25).

Data showed that the Consumer Confidence Index (ICC) reached an all-time high this month for the third consecutive month, up 4.1 points to 83.6.

This result was primarily due to a 6.0-point increase in the Expectations Index (IE) to 92.6 points, the highest level since February 2020, but the Current Situation Index (ISA) also rose 1.4 points to 71.7 points, the highest level since November 2020.

“In the short term, the economic environment is perceived to be more favorable, possibly influenced by the improvement in the labor market and the slowdown in inflation,” Viviane Seda Bittencourt, coordinator of the surveys, said in a statement.

“This contributes to the increase in the impulse to buy, which is more pronounced in higher income brackets.”

Despite the improvement of the ICC in August, “the political scenario may still cause turbulence in this environment in the coming months,” the expert warned. The election campaign for the Planalto officially began this month.

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