Brazil: Consumer confidence increases again in July
July 29, 2014
In July, the consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundaçao Getulio Vargas) increased a seasonally-adjusted 3.0% over the previous month, which marked an improvement over the 1.0% rise recorded in June. The index rose from the 103.8 points tallied in June to 106.9 points in July on the back of an across-the-board improvement. Consumers’ expectations regarding their current economic situations increased at the fastest pace in ten months, whereas their expectations for future conditions tallied the strongest improvement in eight months.
The FGV confidence index spans a range from 1 to 200 points, where 100 points is considered neutral. While consumer confidence has hovered above the 100-point threshold indicating optimism for a long time, it had followed an almost uninterrupted downward trend from mid-2012 until May of this year. The last increase, however, appear to have stopped this trend, although it is too early to draw conclusions regarding the impact of these improvements on private consumption.