Brazil: Consumer confidence continues to slide in June
June 25, 2013
The consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) fell a seasonally adjusted 0.4% over the previous month in June. As a result, the index fell to 112.9 points, which was below the 113.4 points registered in May and represents the lowest level seen in more than three years. The reading reflects how a deterioration in households' assessment of the current economic situation more than offset a slight improvement in future expectations.
The FGV confidence index has a range spanning from 1 to 200 points, where 100 points is considered neutral. At the current level, consumer confidence still sits comfortably above the 100-point threshold, which suggests sustained growth in private consumption going forward.
LatinFocus Consensus Forecast participants expect private consumption to expand 3.1% in 2013, which is down 0.5 percentage points from last month's forecast. For 2014, panellists expect private consumption to increase 3.6%.