Brazilian consumer confidence fell again in October, after four consecutive increases, due to the sharp worsening of expectations for the coming months and despite the recovery of the perception of the current situation, as shown by data released on Friday by the Fundação Getúlio Vargas.
The consumer confidence index (CCI) fell 0.7 points in October to 93.0 points, after rising 0.5 points in September.
“After four months of growth, consumer confidence fell in October, in a move to accommodate expectations for the coming months. In the month, only the indicator that measures the current perception of the economy recorded an increase,” said Anna Carolina Gouveia, economist. at FGV IBRE.
In October, the expectations index (IE) fell by 2.5 points, to 99.7 points, also interrupting a sequence of four consecutive advances.
The current situation index (ISA), however, started to rise again, with an increase of 2.0 points in the month, to 83.7 points, reaching the highest level since December 2014 (86.8 points).
The decline in the ICC is mainly due to the decline in the component relating to the future financial prospects of families, which fell by 2.8 points to 103.8 points, the lowest level since June of this year (100.4 points).
In October, however, the component relating to the perception of families’ personal financial situation rose by 3.4 points, to 73.3 points.
“The result was similar for all income groups, with the worsening of expectations being the driver of the worsening of confidence, with the exception of consumers receiving between R$ 2,100.01 and R$ 4,800.00, who showed favorable results in the month,” Gouveia said.
(edited by Camila Moreira)
Source: Terra
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