The FINANCIAL — Consumer confidence in Brazil declined in August, to the lowest level ever, as the country’s sluggish economy shows no signs of recovery, according to Nasdaq.
Brazil’s main consumer-confidence index was at 80.6 points, down from 82 points in July, the Getulio Vargas Foundation, or FGV, said on August 25. The index has a 1-to-200-point range, with 100 considered an indicator of neutral sentiment.
The level of consumers’ confidence reached the lowest level since it started to be compiled in 2005. The low level of 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 reached 9.57% in mid-August–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 have projected that Brazil’s economy will contract by around 2% 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.
