Brazil: Consumer confidence rises to over two-year high in February

The consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundaçao Getúlio Vargas) increased a seasonally-adjusted 3.2% from the previous month in February, building on the previous month’s gains. The index rose from January’s 79.3 to 81.8—the best result since December 2014. The improvement was driven by consumers’ less pessimistic views regarding the current and future economic situations compared to the previous month.

The FGV confidence index spans a range from 1 to 200 points, where 100 points is considered neutral. The index currently lies deep in pessimistic territory.

Panelists surveyed for this month’s LatinFocus report expect private consumption to fall 0.1 in 2017, which is down 0.1 percentage points from last month’s forecast. For 2018, panelists expect private consumption to rise 1.8%.