Brazil: Consumer confidence edges down in May
May 24, 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 May. As a result, the index fell to 113.4 points, which was below the 113.9 points registered in April and represented the lowest level seen in more than three years. The reading reflects how an improvement in households' assessment of the current economic situation was more than offset by a deterioration 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 3.6% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, panellists expect private consumption to increase 3.9%.