Brazil: Consumer confidence falls to lowest level in over four years
July 23, 2013
In July, the consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) fell a seasonally adjusted 4.1% over the previous month. The index registered 108.3 points, which was below the 112.9 points recorded in June and represents its lowest level in over four years. The reading reflects a deterioration in households' assessment of the current economic situation as well as in expectations for the future.
The FGV confidence index range spans from 1 to 200 points, where 100 points is considered neutral. At the current level, consumer confidence still sits above the 100-point threshold, which suggests sustained growth in private consumption going forward.
LatinFocus Consensus Forecast participants expect private consumption to expand 2.9% in 2013, which is down 0.2 percentage points from last month's forecast. For 2014, panellists expect private consumption to increase 3.4%.