Brazil: Consumer confidence moderates further in May
May 25, 2011
The consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) dropped a seasonally adjusted 2.4% over the previous month to 115.4 points in May. With the third consecutive negative reading, the index is now 1.2% below the value observed in the same month last year and continues to further diverge from the historic high of 124.2 points recorded in November 2010. The FGV index has a range spanning from 1 to 200 points, where 100 points is considered neutral. The decline in confidence reflected a less optimistic assessment of the current economic situation as well as future expectations, with both declining a seasonally adjusted 2.4% over the previous month. That said, consumer sentiment remains elevated, which bodes well for solid growth in private consumption this year.