The FINANCIAL — Consumer confidence in Brazil fell to the lowest level ever in September, as the country’s economic conditions show no signs of recovery, according to Nasdaq.
Brazil’s main consumer-confidence index was at 76.3 points, down from 80.6 points in August, the Getulio Vargas Foundation, or FGV, said on September 24. The index has a 1-to-200-point range, with 100 considered an indicator of neutral sentiment.
Consumers’ confidence reached the lowest point since it started to be compiled in 2005. The low level confidence takes place as Brazilians remain pessimistic over the economic situation, mainly about inflationary pressures, interest- rate increases, and rising fears over job losses, FGV economists said.
Inflation in Brazil is well above the top end of the central bank’s 2.5%-to-6.5% target range–annual consumer inflation is at 9.57%–while the Selic base interest rate is at 14.25% a year.
The country’s economy has been failing to regain traction. After expanding just 0.1% last year, economists expect Brazil’s economy will contract by around 2.7% this year.
The consumer-confidence index polls 2,000 families in Brazil’s seven largest cities. It measures their willingness to make purchases of various consumer goods and gauges expectations about employment, income and economic opportunities.