Consumer confidence index falls 25% in a year

Consumer confidence paulistano plummeted this month. In may, the consumer confidence index (CCI) of the Trade Federation of the State of São Paulo (Fecomercio-SP) fell 25 percent compared to may 2013 and 9% in comparison to April this year. It was the largest annual shrinkage of the historical series of the bookmark, which began to be established in July 1994. The index, which today stands at 109.5 points, is at the lowest level since October 2005.
"The escalating pessimism is sharp and widespread," says the Economic Adviser of the Fecomercio-SP, Altamiro Carvalho. He notes that since February last year the ICC has shown setbacks over the same month of the previous year and that the scale of the fall will increase every month.
In the analysis of the Economist, the persistence of inflation and the accumulation of information that indicates a deterioration in the economic environment are factors that led to the negative result.
A given that calls attention, according to Carvalho, is that the behavior of the two indicators that make up the ICC changed. Usually, the expectations index, which measures consumer confidence in the future, i.e. within a period of up to five years, is larger than the indicator of confidence in the current situation. This month, however, consumer confidence in the future is not only lower than the current, but also had largest drop.
In may, the expectation indicator retreated 26.4% in comparison with the same month of 2013, while confidence in the current situation indicator fell 23% in the same period. "It's the consumer's dismay regarding the economic situation in the medium and long term," he points out.
Rent. The research of the Fecomercio-SP, made with 2.1 thousand customers in the city of São Paulo, shows that the confidence is less in monthly income among the population with the highest income. The paulistanos who receive more than ten minimum wages had 16.3% reduction in April confidence index for may. Already consumers with monthly income less than ten minimum reduced their confidence in 8.7% last month.
Women are more skeptical regarding the economy and reduced confidence in 11.7% from April to may, while among men the fall amounted to 9.6%. For Carvalho, the biggest decline among women reflects the inflationary pressure.