Brazil: Consumer confidence drops in August
August 25, 2011
The consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) declined a seasonally adjusted 4.6% over the previous month to reach 118.7 points in August, after the index reached its highest level in almost six years in July. The lower confidence reading reflected a less optimistic assessment of future expectations (-4.5% month-on-month) as well as the current economic situation (-2.9% mom). The FGV confidence index has a range spanning 1 to 200 points, where 100 points is considered neutral. Despite the August drop, the consumer confidence index remains well above the threshold, which bodes well for solid growth in private consumption in the remainder of this year.