Brazil: Consumer confidence drops in October
October 23, 2013
In October, the consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) fell a seasonally-adjusted 2.2% over the previous month, which contrasted the 1.0% increase registered in September. The index dropped to 111.7 points, erasing the gains from the previous two months. September's decrease reflects that households have a slightly more negative assessment of the current economic situation and notably lower expectations for the future of the economy.
The FGV confidence index range spans from 1 to 200 points, where 100 points is considered neutral. Consumer confidence remains above the 100-point threshold, which suggests sustained growth in private consumption going forward.
LatinFocus Consensus Forecast participants expect private consumption to expand 2.2% in 2013, which is down 0.3 percentage points from last month's forecast. For 2014, panelists expect private consumption to increase 2.5%, which is down 0.5 percentage points from last month's projection.
Author: Carl Kelly, Economist