Brazil: Consumer confidence retreats in December
December 20, 2013
In December, the consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) fell a seasonally-adjusted 1.2% over the previous month, which contrasted the 1.0% increase registered in November. The index decreased to 111.5 points. December's result reflects that households' assessments of the current economic situation are more negative and that they have 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. Despite December's drop, 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 2.3% in 2014, which is unchanged from last month's forecast. For 2015, panelists expect private consumption to increase 2.6%.
Author: Carl Kelly, Economist