Brazil: Consumer confidence moderates further in April
April 29, 2011
The consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) dropped a seasonally adjusted 1.6% over the previous month to 118.2 points in April. Despite two consecutive negative readings, the index is still 2.1% higher than in the same month the year before but retreated from the historic high of 124.2 points recorded in November 2010. The FGV index has a range of 1 to 200 points, where 100 points is neutral. The decline in confidence was driven by a less optimistic assessment of the current economic situation, as consumers' spending decisions have been increasingly constrained by the current monetary tightening cycle, which saw interest rates rise by 125 basis points since January. However, consumer sentiment remains elevated, which bodes well for a resilient expansion in private consumption this year.