Brazil’s consumer confidence index continues to grow
Brazil’s consumer confidence rose for the fourth straight month in August and reached the highest level since 2015.
According to the data released by the Getulio Vargas Foundation, the Consumer Confidence Index (CCI) rose 2.6 points in August from the previous month, reaching 79.3 points, the highest reading since January 2015.
Current Situation Index (ISA) was among the highest with an increase of 3.8 points, reaching 69.5 points. Whereas the Expectations Index (IE) rose by 1.6 points, reaching 86.9 points which is the highest since December 2014.
According to Viviane silk Bittencourt, Consumer Survey Coordinator, this is a favourable sign. Mrs Bittercourt said,
“About 90 percent of the improvement in consumer confidence over the previous four months had been determined by better expectations. In August though, most of the improvement came from the greater satisfaction with present conditions, which is a favourable sign.”
Indeed, business confidence is also on the rise, especially amongst small and medium entrepreneurs.
According to IC-PMN, confidence levels have increased for the third quarter of 2016 compared to the previous quarter. The index was up by 3.18% percent (60.35 points).
Gino Olivares, teacher and researcher from Insper (Institute of Education and Research) thinks the rise in IC-PMN index was mainly driven by increased confidence about Brazil’s economy. Mr Olivares said,
“The indicator suggests that entrepreneurs are more optimistic due to the changes perceived or expected in macroeconomic conditions in the country, which may represent a faster recovery of economic activity.”
The consumer-confidence index polls 2,046 families across Brazil’s seven largest cities, measuring their willingness to purchase various consumer goods and evaluates expectations about employment, income and economic opportunities.
Award winning developer, Ritz-G5 is also feeling optimistic about the future of Brazil. Group CFO, Paul Telfer comments,
“Brazil has experienced some challenges in the past couple of years, however we find that from a business perspective the interest in Brazil and its products continues to grow.
“Based on the increase in consumer confidence in the past few months, we see that Brazilians are not only feeling positive about the future of their country and economy, but are also more satisfied with the current conditions. This signifies an optimistic and stable outlook for the economy of Brazil.”
For further details, contact the Ritz-G5 team on +44 207 183 7565 or visit www.ritz-g5.com