Brazil: Consumer confidence remains unchanged in January
January 27, 2011
Brazilian consumer sentiment remained broadly stable in January. The consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas), decreased a seasonally adjusted 0.1% over the previous month to 121.6 points in January. At the current level, the index is 7.7% higher than in the same month the previous year. The FGV index has a range of 1 to 200 points, where 100 points is neutral. Consumers' assessment of the current economic situation decreased 1.4% in January while sentiment regarding the economic situation for the next six months increased 0.7%. The deterioration in consumer sentiment regarding the current state of the economy can be partly attributed to the monetary tightening measures introduced during January. Nonetheless, consumer confidence is only 2.0% below the historical peak recorded in November 2010, auguring well for a resilient expansion in private consumption in the final quarter of 2010.