Brazil: Consumer confidence continues recovery in December
December 24, 2018
The seasonally-adjusted consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundaçao Getúlio Vargas) rose 0.6% from the previous month in December. Accordingly, the index ended 2018 on a solid note at 93.8 points, the best reading since April 2014 (November: 93.2).
The rise was driven by consumers’ more optimistic assessment of the current economic situation likely helped by recent gains in the labor market and the reduction of political uncertainty with the end of the election cycle. However, consumers’ opinions of the future economic situation deteriorated in December.
The FGV confidence index spans a range from 1 to 200 points, where 100 points is considered neutral. Despite improvements over the past two years the index remains entrenched in negative territory.