Consumer demand for credit grew 3.7% in 2016

Sao Paulo-the consumer credit demand rose 3.7% in 2016, 2015, according to Serasa Experian. Despite the high, the Brazilian''s quest for money took to discharge of debts, interfering little to encourage the new acquisitions, that factor would be decisive for resumption of retail. According to the indicator result verified 2016 gave the history of smaller advances of recent years (see chart) and, for the Serasa Experian economists, inflation still high, especially in the first half of the year, consumer efforts in reducing pay their debts, the high cost of credit and the low degree of indexes of consumer confidence determined a weakened performance of consumer demand for credit in the year 2016, the example of what has taken place in recent years.
"It is worth noting also that, in accordance with both the retail sales data as of 2016 credit concessions, it appears that the demand for credit in the past year was characterized by seeking to discharge credit/debt renegotiation than for the expansion of consumer debt/consumer investment", said the report by Serasa, signaling that, even if the consumer has sought credit the purpose of the contribution was lower the indebtedness of families, and not invest in new acquisitions in retail.


Income analysis
According to a survey, over the past year the search for consumer credit rose in all other income ranges in relation to the year 2015. For those who earn up to 500 R$, the high was weak: 1.1%. For consumers with monthly income between 500 and 1,000 R$ R$, the high was 3.7%. For the monthly income between 1,000 and 2,000 R$ R$, the growth was 4.3%. Already consumers with monthly income between 2,000 and 5,000 R$ R$, the growth was 4.1%. To those who earn between 5,000 and 10,000 R$ R$ per month, the expansion was 3.9%.
When clipping occurs by regions in the country, in the year 2016 the consumer demand for credit has advanced 7.2 percent in the South, 3.7% in the Southeast, 5.1 percent in the Midwest and 1.7 percent in the Northeast. In the opposite direction was just the northern region with accumulated 2.6% drop from January to December 2016 in comparison with the period from January to December 2015.
Other data that corroborates with the prospect that the Brazilian sought to pay off credit debt was disclosed yesterday by da Boa Vista SCPC. According to national data, the consumer delinquencies fall of 0.9% in gained 2016. Monthly evaluation, discounted seasonal effects, there were 7.6% retracement of the indicator when compared the outcome of December versus November. Already in the assessment against the same month of the previous year, December fell 5.7 percent. Regionally, in 12 months accumulated in analysis, the highest elevation in the North occurred (4.1%), followed by the northeast (2.6%) and the Midwest (2.0%). In the South and Southeast regions there were 4.9% retracement and 2.0%, respectively.


Caution
"The adversities that occurred in the economy over the past two years have generated great care in families, by inhibiting the consumption and consequently contributing to the decrease in the flow of bad debt," says the report of Boa Vista. For 2017, keeping the prospect of little economic growth and lower interest income and inflation controlled, it is expected a resumption of sustainable credit demand, expanding families '' disposable income, factors that collaborate to maintain the current stability of the default scenario.