In August, retail confidence in Brazil dipped, marking its lowest since November.
The Getulio Vargas Foundation’s Brazilian Institute of Economics recorded a decrease in the Commercial Confidence Index to 89.1, down 1.8 points after a slight rise in July.
Historically, the index was at a slightly lower 88.4 points in November 2023 and slightly higher at 89.3 in December.
Throughout the following months, it generally stayed above these figures until July 2024. The quarterly moving average also fell, down by 0.8 points to 90.1.
The decrease in August affected all six major sectors of the industry, notably driven by a 5.5-point drop in the Expectations Index (IE-COM) to 87.0 points.
Specifically, the component forecasting business trends over the next six months fell sharply by 6.9 points to 89.2 points, a low not seen since February’s 88.2 points.
The outlook for the next three months’ sales also decreased by 4.1 points, marking a four-month continuous decline to 85.1 points.
In contrast, the Current Situation Index (ISA-COM) rose by 2.0 points to 91.9 points. This increase was not consistent across all indicators, though.
The evaluation of current business conditions slightly fell by 0.3 points to 91.2, while the assessment of current demand significantly rose by 4.2 points to 92.7, recovering after three months of declines.
This mixed performance highlights the challenges in Brazil’s commercial sector, now facing higher interest rates and inflation risks that directly impact consumer spending.
Despite a resilient job market and a slight boost in consumer confidence, businesses remain guarded, not fully confident about future sales prospects.
Brazil’s Retail Confidence Dips in August
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