The confidence of Brazilian consumers worsened in May, in the face of high inflation and the difficulty of finding jobs, according to data from the FGV (Fundação Getúlio Vargas) released this Wednesday (25).
The FGV’s ICC (Consumer Confidence Index) dropped 3.1 points this month, to 75.5 points.
The ISA (Current Situation Index), which reflects consumer sentiment about the present moment, was stable at 69.1 points, while the IE (Expectations Index), which covers the perception of the coming months, dropped 5.1 points, to 81.0 points, the lowest level since last January (80.7 points).
“The latest consumer confidence results show that despite the improvement of the pandemic and the package of incentives to relieve the financial pressure of families, inflation and the difficulty of obtaining a job continue to negatively impact families, especially those with lower incomes”, he highlighted. in a note to the survey coordinator, Viviane Seda Bittencourt.
Data released the day before by the IBGE showed that the rise in the IPCA-15, considered a precursor to inflation, slowed to 0.59%, from 1.73% in the previous month. Despite the lower number, the reading represented the biggest change for a month of May since 2016 (+0.86%) and was above the expectation in a Reuters poll, of an increase of 0.45%.
“In addition, there is concern about the future prospects that will be affected by an election year that promises to be very fierce. The scenario for the coming months does not indicate a clear trend of recovery, especially in view of the challenges exposed”, added Bittencourt.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
