FX.co ★ Brazil Consumer Confidence Rises for Third Month in May

In May 2025, Brazil's seasonally adjusted FGV-IBRE Consumer Confidence Index experienced an uptick of 1.9 points, reaching 86.7. This marks the third consecutive month of improvement and the highest level seen since December 2024. The positive shift in consumer confidence is primarily attributed to a reduction in pessimism concerning the current financial situation of households, improving from 81.1 to 84.0. Additionally, there was a slight enhancement in future expectations, rising to 89.1 from 88.1. According to Anna Carolina Gouveia, an economist at FGV, the widespread improvement across various income brackets indicates the robust nature of economic activity in 2025. A buoyant labor market has been instrumental in maintaining consumer sentiment, whereas inflation, albeit troubling, has remained under control. However, it is important to note that the index is still below the neutral threshold of 100 points, signaling that consumer sentiment remains generally pessimistic.