Brazilian trade confidence in July is highest since January 2019 – FGV-Ibre

RIO DE JANEIRO, BRAZIL – According to the Trade Survey of the Brazilian Economic Institute FGV (FGV Ibre), confidence in retail and wholesale trade increased in July, reaching the highest level in two and a half years, with a significant improvement in businessmen’s assessment of both the current moment and the future.

The Trade Confidence Index rose 5.1 points in July to 101, its highest level since January 2019, when it reached 102.3. In terms of quarterly moving averages, the indicator increased by 5.6 points, recording the third consecutive high.

According to the economist, maintaining the positive results of the sector depends on the progress of the vaccination program and the improvement of consumer confidence. A scenario that still has risks and misses the recovery of the labor market.

In July, confidence increased in all six major trade segments and was influenced by improving the perception of the current situation and expectations.

The current situation index rose 4.5 points to 108.7, its highest level since December 2010 (110.2 points). The expectations index rose by 5.6 points to 93.2, making up for exactly what had been lost in the previous month.

For the survey, information was obtained from 800 companies between the 1st and 23rd of this month.

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