Brazil: Consumer confidence plummets in November
November 24, 2014
In November, the consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundaçao Getulio Vargas) decreased a seasonally-adjusted 6.1% over the previous month, which was a deterioration from the 1.5% fall recorded in October. The index fell from the 101.5 points tallied in October to 95.3 points in November, which marked the lowest level since October 2008. The figure was the result of a deterioration in both consumers’ future outlook on the economy and their current economic situation indexes compared to the previous month.
The FGV confidence index spans a range from 1 to 200 points, where 100 points is considered neutral. Prior to this month’s figure, consumer confidence had hovered above the 100-point threshold, indicating optimism, although it had followed an almost uninterrupted downward trend from mid-2012 until May of this year. Following this month’s release, consumer confidence now lies in pessimistic territory.