Brazil’s consumer confidence rises to 7-month high in June

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FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in Rio de Janeiro
FILE PHOTO: People walk in a popular shopping street before Christmas, amid the coronavirus disease (COVID-19) outbreak, in Rio de Janeiro, Brazil, December 23, 2020. REUTERS/Pilar Olivares

June 24, 2021

By Jamie McGeever

BRASILIA (Reuters) – Consumer confidence in Brazil rose in June to a seven-month high, a survey indicated on Thursday, a third consecutive increase as households looked through the current wave of COVID-19 to brighter economic prospects in the coming months.

The Getulio Vargas Foundation’s (FGV) consumer confidence index rose 4.7 points to 80.9 points in June, the highest since November, FGV said, with future expectations rising much faster than the current conditions index.

Graphic: Brazil consumer confidence – https://fingfx.thomsonreuters.com/gfx/mkt/jbyprzjodpe/consconf.png

“For the first time since July last year, intentions to buy durable goods has risen more sharply, which seems related to greater optimism regarding the labor market in the coming months,” said survey coordinator Viviane Seda Bittencourt.

The index remains below its pre-pandemic level of 87.8 in February last year, however.

The current situation index rose 2.9 points to 71.6, while the expectations index jumped 5.9 points to 88.3, FGV said.

The rise in confidence was spread across all income brackets, especially those consumers at the top earning more than 9,600 reais ($1,940) a month, FGV said. Confidence among those consumers rose to the highest level since February last year, just before the pandemic struck. ($1 = 4.96 reais)

(Reporting by Jamie McGeever; Editing by Alex Richardson)