Consumer confidence in Brazil backs down in September in the face of worsening of expectations, says FGV

The Brazilian consumer confidence declined in September for the second month followed due to worsening expectations for the coming months amid frustration with the slow recovery of the labour market, reported on Monday the Fundação Getulio Vargas ( FGV). With 1.7 point drop compared to August, the consumer confidence index (ICC) reached 82.1 points in September, returning to the level of June, when confidence had been shaken by the truckers ' strike the previous month. " The result seems to be directly related to the financial situation of households and the slow recovery of the labour market. Despite adding the political-electoral scenario does not seem to be the major factor for the fall of the indicator in September, "said the Coordinator of consumer Polling, Viviane Silk Bittencourt, in a note. Economic activity in Brazil currently has a weak pace of growth, marked by unemployment in double digits and ample capacity idle. Despite a slight improvement of evaluations on the current situation, the September result was based on a worsening expectations for the coming months. The Current Situation index (ISA) advanced 0.9 point, to 72.3 points, while the Expectations index (IE) retreated 3.3 points, to 89.7 points, registering the lowest level since February 2017. According to the FGV, the indicator that measures the degree of satisfaction with the economy time fell 1.1 point in September, returning to the level of June 77.5 points). Already the indicator which measures the optimism regarding the evolution of the economy shrank by 3.4 points, reaching 100.0 points, the lowest level since may 2016.