Confidence of the poorest consumer worsens, and that of the richest improves, says FGV

Although Brazilian consumer confidence advanced in June to the best level since August 2021, there are signs of a lot of heterogeneity in perceptions according to income, says FGV (Fundação Getúlio Vargas) this Friday (24).

According to the figures from the ICC (Consumer Confidence Index), in June, there was an improvement in both the perception of the current moment and the future. However, Viviane Seda Bittencourt, coordinator of the surveys, says that there is a difference between the evaluations of the poorest and the richest consumers.

“Even considering the financial incentive package, the assessment of the current situation by low-income consumers continues to deteriorate while their outlook for the coming months remains quite volatile, revealing high uncertainty,” she said in a note.

Consumers with higher incomes, on the other hand, perceive an improvement in their financial situation and, for the second month, increase their purchase intentions, possibly an effect of the stimulus given by the government, he says.

The FGV’s ICC rose 3.5 points in June to 79.0 points, marking the best result since a reading of 81.8 seen in August 2021.

In June, the ISA (Current Situation Index) advanced 1.3 points to 70.4 points, the best result since July 2021. The IE (Expectations Index), in turn, advanced 4.9 points and reached 85.9 points.