Consumer Confidence in Brazil Drops 0.4 Points in July

RIO DE JANEIRO, BRAZIL – The Consumer Confidence Index, measured by the Getúlio Vargas Foundation (FGV), retreated 0.4 points from June to July this year, reaching 88.1 points on a scale from zero to 200 points. According to FGV, the indicator remains at a historically low level.

The drop was caused by the poorer assessment of consumers about the future. The Expectations Index retreated two points to 97.7 points and remained below 100 points for the fourth month running. Optimism regarding the evolution of the financial condition of families was the main contributor to this result, with a drop of 4.1 points.

On the other hand, consumers are more pleased with the current situation. The Current Situation Index increased 1.9 points to 75.3 points. The indicator that measures the satisfaction level with the financial position of households rose 2.8 points.

According to researcher Viviane Seda Bittencourt, there was much more diversity among the responses of consumers. Those with greater purchasing power are more optimistic, according to her. Among the others, expectations continued sliding downwards. “Apparently, for the low-income consumer, concern over the labor market and with the family financial standing are still the most important factors to determine the confidence trends this year”.