The confidence of Brazilian consumers interrupted a sequence of four highs and retreated in October, as expectations for the coming months worsened, according to data from the Getulio Vargas Foundation released this Tuesday (25).
FGV’s Consumer Confidence Index (ICC) dropped 0.4 point in the month, reaching 88.6 points.
According to the survey coordinator, Viviane Seda Bittencourt, the result points to a change in behavior, with improved assessments of the current moment influenced by consumers with lower purchasing power and a review of expectations for the coming months of consumers with greater purchasing power.
The Current Situation Index (ISA) rose 1.2 points to 74.5 points, the highest level since March 2020, but the Expectations Index (IE) dropped 1.5 points to 98.7 points.
“It is possible that this result is being influenced by the effect of income transfers, reduction of inflation for the third consecutive month and growth of jobs”, explained Bittencourt.
“Despite the more favorable result for the lower income classes, household indebtedness and higher interest rates limit a more robust recovery,” he added.
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