Brazil: Consumer confidence falls for fifth straight month in February
February 26, 2013
The consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) fell for the fifth consecutive month and decreased a seasonally adjusted 1.4% over the previous month in February. As a result, the index edged down to 116.2 points, which was below the 117.9 points registered in January and represented the lowest level seen in 13 months. 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%.