Brazil: Consumer confidence falls to the lowest level in 18 months
September 27, 2011
The consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) declined a seasonally adjusted 3.4% over the previous month to reach 114.7 points in September, below the 118.7 points registered in August. The result represented the second consecutive monthly drop in consumer confidence, which is currently sitting at its lowest level since March 2010. The lower confidence reading reflected a less optimistic assessment of the current economic situation (-4.1% month-on-month) as well as of future expectations (-2.9% mom). The FGV confidence index has a range spanning 1 to 200 points, where 100 points is considered neutral. Despite the September drop, the consumer confidence index remains well above the 100-point threshold, which suggests sustained growth in private consumption for the remainder of this year.