Brazil: Consumer confidence drops in March

The seasonally-adjusted consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundaçao Getúlio Vargas) fell in March, dropping to a three-month low. The index came in at 91.0 points, notably below February’s 96.1.

The fall was driven by consumers’ less optimistic assessment of both the current and future economic situations. Slow reform momentum and downbeat economic growth likely contributed to weakening sentiment.

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 in negative territory.

Brazil Private Consumption Forecast

LatinFocus panelists expect private consumption to rise 2.4% in 2019, which is unchanged from last month’s forecast. For 2020, panelists expect private consumption to increase 2.8%.