Consumer confidence reaches optimistic level for the 1st time since the beginning of the pandemic, says ACSP

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The Brazilian’s confidence reached an optimistic level for the 1st time since the beginning of the pandemic.

An increase in consumer confidence was registered in all Brazilian regions and socioeconomic classes in November, according to the National Confidence Index (INC) of the Commercial Association of São Paulo.

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The upward curve, which began in May 2020, recorded 105 points in November, which identifies an optimistic level, according to the study.

The last record in this field was in January 2020, before the closure of the economy due to the social isolation measures adopted by state governments to contain the spread of the Covid-19 virus.

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The survey was carried out with a sample of 1,700 Brazilian families, living in capitals and cities in the interior.

The recovery of confidence, according to the analysis of the ACSP economist, Ulisses Ruiz de Gamboa, is mainly based on the improvement of expectations regarding its future financial situation, and on the increasingly less negative perception of the current situation.

“This optimism is explained by the recovery of activity greater than expected, which increases the generation of jobs, and by the various income transfers granted by the Federal Government, in addition to the expansion of the payroll loan margin”, points out Ruiz de Gamboa.

The INC grew 6.1% compared to the previous month, 25% in the interannual comparison. The recovery of consumer confidence began in May last year. According to the sample, all Brazilian regions and socioeconomic classes showed increased confidence.

The economist considers that, although consumers are increasingly confident about job security, the negative perception of families in relation to their current financial situation remains high.

“The improved perception of the current situation and greater optimism about the future continued to be reflected in the greater proportion of respondents willing to buy higher-value items, such as a car and house, durable goods, such as a refrigerator and stove, and to make investments” , concludes Ruiz de Gamboa.

Source: CNN Brasil

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