The Consumer Confidence Index (ICC) for July, released this Monday (25) by FGV IBRE, increased 0.5 point in July, to 79.5 points. On quarterly moving averages, the index rose 0.3 point to 78 points.
In the monthly analysis, the peak of the historical series, started by the institution in June 2005, was 113.2 points, in April 2012.
The result was influenced by the increase in expectations for the coming months, according to a statement from Ibre.
Ibre poll coordinator, Viviane Seda Bittencourt understands that the scenario is one of accommodation, despite incentives such as Auxílio Brasil and the extraordinary withdrawal from the Severance Indemnity Fund (FGTS).
“Apparently, the effect of the government’s stimulus loses strength and fails to reverse the poor perception of the financial situation of families with lower purchasing power. Despite this, there is an improvement in the outlook for the economy and employment in the coming months”, explains the economist.
The numbers for the future perspectives bring an improvement in the confidence of low-income consumers, due to an improvement in the expectations of the economy and employment, while that of the higher-income public retreated, due to the inversion of perspectives for the coming months.
At this moment, the behavior of consumer confidence is different between income groups: it is higher among those with greater purchasing power and lower among the poorest.
“As we indicated earlier, the proximity of the elections can make expectations more volatile, considering that there is no prospect of a change in economic factors in the coming months”, concludes Viviane Senda Bittencourt.
In relation to what is expected in the coming months, the Expectations Index rose 0.7 point and is at 86.6, the highest level since August 2011. The Current Situation Index fluctuated 0.1 point down and was at 70 points, lower than pre-pandemic level.
The indicator also noticed important drops in items that make up the components. The outlook on the financial situation in the coming months increased by 3.5 points and is now at 89.3 points.
The indicator on the economic situation for the next six months advanced 1.5 points and ends this edition at 104 points, the highest level since August 2021.
Buying momentum for durable goods dropped 2.9 points and ended July at 67.7 points. The result reverses a trend that came from a two-month high.
THE CNN FGV economist Ibre Rodolpho Tobler, responsible for the indicator, explained that the Consumer Confidence Index above 100 points points to a positive scenario, while a score below 100 indicates a more pessimistic level.
Source: CNN Brasil

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