FX.co ★ Brazil Consumer Confidence Falls on Weaker Outlook

In August, Brazil's seasonally adjusted FGV-IBRE Consumer Confidence Index experienced a slight decline, decreasing by 0.5 points to settle at 86.2. This movement countered the gains observed in July, driven solely by diminished expectations. The Expectations Index saw a decrease of 1.3 points, landing at 88.1. Notably, the outlook for the local economy fell by 2.8 points to 97.7, marking its third straight decrease, while expectations about household finances decreased by 2.6 points to 79.8, the lowest level since September 2021. On the other hand, intentions to purchase durable goods increased by 1.3 points to 88.2, reaching the highest point since December 2024. Meanwhile, the Current Situation Index climbed 1.1 points to 84.5, registering its second successive rise, partially driven by a 2.6-point improvement in household financial conditions to 75.4. This improvement was noted despite a slight 0.3-point decline in the local economic situation, which now stands at 94.0. Economist Anna Carolina Gouveia pointed out that consumer confidence has been fluctuating within a range over the past three months, demonstrating no definitive trend but remaining subdued overall.