FX.co ★ Brazil Consumer Confidence Eases from 3-Month High

The seasonally adjusted FGV-IBRE Consumer Confidence Index decreased by 0.8 points to 85.9 in June 2025, halting a three-month period of growth and indicating a stabilization of sentiment. This decline was primarily due to deteriorating views of current conditions, as indicated by the drop of 2.1 points in the current household financial situation to 72.5. Additionally, there was a slight reduction of 0.4 points in the Expectations Index, bringing it to 88.7. However, a positive note was seen in one component—expectations for the family's future financial situation—which increased by 1.2 points to 88.6. According to FGV economist Anna Carolina Gouveia, this combination reflects a cautious consumer outlook. The downward adjustment of current conditions, alongside ongoing concerns about the family budget—exacerbated by debt, high interest rates, and a restrictive monetary policy—indicates that, despite relatively strong economic activity and labor market conditions, consumer sentiment remains generally pessimistic, as evidenced by the index being below the neutral 100-point threshold.