Brazil: Consumer sentiment increases in September
Latest reading: The seasonally adjusted consumer confidence index published by the Getúlio Vargas Foundation (Fundação Getúlio Vargas) went up to 87.5 in September, following August’s 86.2. September marked the highest sentiment reading since December 2024. However, the index remained entrenched below the 100-point threshold, indicating stark pessimism among Brazilian consumers.
In September, households grew more positive about expectations for the coming months (+91.8 vs +88.1 in August). On the flipside, households grew less upbeat about the current situation (+82.0 vs +84.5 in August).
Outlook: Consumer sentiment averaged slightly above Q2 in Q3, but still well in pessimistic territory—dampened by near two-decade high interest rates and above-target inflation. Accordingly, private consumption growth likely remained muted in the third quarter.