Consumer confidence in Brazil recovers to a six-month high in February

RIO DE JANEIRO, BRAZIL – Consumer confidence in Brazil recovered to a six-month high in February, according to data released by the Getúlio Vargas Foundation on Tuesday, February 22. However, its low level in historical terms continues to require caution.

In February, FGV’s Consumer Confidence Index (ICC) rose 2.9 points to 77.0, the highest level since August 2021 (81.8).

The result reflected an improvement in assessing the present moment and expectations for the coming months. The Present Situation Index (ISA) advanced 1.5 points to 67.6 points, while the Expectations Index (IE) gained 3.8 points to 84.5 points, the highest since August 2021 (90.9).

“The highlight was the increase in the intention to buy durable goods, which has been falling for five consecutive months,” said the coordinator of the surveys, Viviane Seda Bittencourt, in a statement. This indicator advanced 8.8 points to 69.1 points, the highest level since August 2021 (69.7).

“The Brazil Aid may have influenced the positive result in the lower income brackets, more favorable prospects about the labor market and economic situation,” said Bittencourt.

“But we must be cautious. The level (of the ICC) is still very low in historical terms. The volatile behavior of consumers in recent months shows that high uncertainty has greatly affected the maintenance of a clearer trend of confidence in the short term,” warned the specialist.

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