Brazil: Consumer confidence grows in August
August 23, 2013
In August, the consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) rose a seasonally-adjusted 4.4% over the previous month, contrasting the 4.1% fall registered in July. The index reached 113.1 points, which was an improvement over July's four-year low of 108.3 points. The reversal reflects households' more positive assessment of the current economic situation as well as in their expectations for the future.
The FGV confidence index range spans from 1 to 200 points, where 100 points is considered neutral. Consumer confidence remains 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%.
Author: Carl Kelly, Economist