Brazil: Consumer confidence rebounds from over-five-year low in June
June 27, 2014
In June, the consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundaçao Getulio Vargas) increased a seasonally-adjusted 1.0% over the previous month, which contrasted the 3.3% fall recorded in May. The index rose from the 102.8 points tallied in May to 103.8 points in June on an across-the-board improvement. Consumers’ expectations regarding their current economic situations increased at the fastest pace in nine months, whereas their expectations for future conditions tallied the strongest improvement in seven months.
The FGV confidence index spans a range from 1 to 200 points, where 100 points is considered neutral. While consumer confidence is still above the 100-point threshold indicating optimism, the virtually-uninterrupted downward trend that has been in place since the index reached its peak in April 2012 (notwithstanding this month’s improvement), does not bode well for growth in private consumption going forward.