Brazil: Consumer confidence rises a notch in October
November 1, 2010
Brazilian consumer sentiment rose for the eighth consecutive month in October. The index of consumer confidence published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) inched up 0.1% over September in seasonally adjusted terms to reach 121.8 points in October. The upward trend in consumer optimism in place since March indicates that private consumption remained an important source of growth in the third quarter. However, October's broadly flat reading suggests that household spending can be losing momentum in the fourth quarter. The positive reading reflected an improvement in consumers' assessment regarding the situation for the next six months, as the sub-index rose 0.2% over the previous month, to reach 111.8 points. In contrast, sentiment regarding the current economic situation inched down to 140.7 points in October, only a notch below the historic high of 140.8 points recorded in September.