Brazil: Consumer confidence slides to the lowest level in three years
March 25, 2013
The consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) fell for the sixth straight month and declined a seasonally adjusted 2.0% over the previous month in March. As a result, the index fell to 113.9 points, which was below the 116.2 points registered in February, and represented the lowest level seen in three years. The lower reading reflects a deterioration in both future expectations as well as in the assessment of the current economic situation.
The FGV confidence index has a range spanning from 1 to 200 points, where 100 points is considered neutral. At the current level, consumer confidence still sits comfortably above the 100-point threshold, which suggests sustained growth in private consumption going forward.
LatinFocus Consensus Forecast participants expect private consumption to expand 3.7% in 2013, which is down 0.2 percentage points from last month's forecast. For 2014, panellists expect private consumption to increase 3.9%.