Market confidence rises as Brazilians grow more optimistic
Brazilian market confidence rises as Brazilians grow more optimistic of their future. June Consumer Confidence Index (ICC) reveals highest levels in a year.
According to a report released by the Getulio Vargas Foundation (FGV) there is an evident and gradual improvement in consumer confidence and one of the main factors contributing to the increased levels is the greater optimism about the improving economy.
As stated by the foundation, the Consumer Confidence Index increased by 3.4 points to 71.3 points in June, from 67.9 points in May, revealing best results since the same time last year.
This was the second consecutive increase as May index had registered an increase of 3.5 points compared to April.
The FGV believes the results show that there is an improvement in expectations among Brazilians.
Viviane Bittencourt, coordinator of the survey for FGV, says Brazilians are feeling more positive,
“The overall result of the survey shows that consumers are becoming gradually less pessimistic about the evolution of the economic and personal finances.”
The consumer-confidence index polls 2,046 families across Brazil’s seven largest cities, measuring their willingness to purchase various consumer goods and evaluates expectations about employment, income and economic opportunities.
The high consumer confidence in June was present across all four income classes surveyed, with the most significant improvement registered in the households with an income ranging between 4,800,01 and 9,600,00 Brazilian real.
According to the Department of Research and Economic Studies (Depec) Bradesco, the improvement in confidence indicators should support “more notable signs” of recovery in economic activity.
“Continuing the trend of recent months, the widespread revival of confidence among the various sectors of the economy supports the stabilization of the economy which we have observed in the second quarter” says Bradesco.
Indeed, the Commercial Association of Sao Paulo (ACSP) and the Ipsos institute released research confirming the improvement of confidence in Brazil.
According to the ACSP national survey, trust grew from 66 points in May to 70 points in June and although still in the negative territory, the study reflects the improvement of the perception among the Brazilians.
Award winning developer, Ritz-G5 is also feeling optimistic about the future of Brazil. Group CFO, Paul Telfer, comments,
“Brazil has experienced some challenges in the past couple of years, however we’re finding that from a business perspective the interest in Brazil and its products continues to grow.
“Based on the recent increase in consumer confidence and perception of the future, we see that Brazilians are feeling more positive about the future of their country and its economy, which signifies a more optimistic and stable outlook for the economy of the South American giant.”
For further details, contact the Ritz-G5 team on +44 207 183 7565 or visit www.ritz-g5.com.