Brazil’s consumer confidence reaches highest level in 9 months

RIO DE JANEIRO, BRAZIL – Consumer confidence in Brazil reached its highest level in nine months in July due to improved perception of expectations for the coming months.

The Getulio Vargas Foundation (FGV) data released Monday showed that the Consumer Confidence Index (ICC) rose 1.3 points in July, reaching its fourth consecutive high, 82.2 points. This is the highest level since October 2020 (82.4 points).

This month, the current situation index (ISA) lost 0.7 points and went to 70.9 points, indicating a lessening of satisfaction with the current situation, according to FGV.

The expectations index (IE) is up 2.5 points to 90.8, reaching its highest level since September 2020.

“There is an improvement in the outlook for the future, but the index that measures the current situation continues to hover around 70 points, which shows that despite the optimism, consumers are experiencing difficulties in financial recovery, especially families with lower purchasing power, who have more difficulty finding employment, organizing family finances and suffering greater effects of rising prices,” Viviane Seda Bittencourt, coordinator of the surveys, said in a statement.

“The scenario for the coming months will depend on progress in vaccination and control of new strains so that confidence continues to increase,” she said.