Consumer enters December pessimistic

Sao Paulo-the slight improvement in the economy, reflected in lower interest rates and inflation, was not enough to let the Brazilian-after three years of recession – in the greatest of Christmas spirits. With confidence still fragile, consumers entering the month of Christmas with the warning sign on, and that can throw a bucket of cold water on retail sales projection.
"In November most of the confidence indicators, both the entrepreneur and the consumer, featured, even with slight signs of improvement in the economic environment. It is still associated with the Brazilian perception of problems in the political sphere will have reflections in everyday life, "said the DCI retail consultant and Professor at the Federal University of Minas Gerais (UFMG), Claudia Cortivo.
In the view of the expert, the trend is that this movement to continue next year, since the 2018 elections are a great unknown. "With the polarized Country, most Brazilians will be unhappy, regardless of the outcome, and it weighs enough to buy", reveals
In addition to the political issue, the uncertainties about the reflection of the labor reform, which changed more than 100 points in CLT, also has left consumers wary. "The Brazilians are waiting to see how reform will impact on your purchasing power, and that will be decisive for retail," commented the DCI the Coordinator of the Center for research of Unifesp and former economist of the Confederation of the shopkeeper in Bauru (CDL), Roger Souto.
Tempered optimism
Consumer distrust was revealed last Friday (1) by the National Confederation of industry (CNI). According to the balance sheet, after rising 2.7 percent in October, the Brazilian consumer confidence retreated 0.2% in November compared to October. Compared to the same month last year, the trust backed down 2.1%. The national index of consumer Expectations (Inec) stood at 101 points, 6.6% below the historical average. "The maintenance of consumer pessimism indicates that the recovery in demand in the coming months tends to be moderate," said the CNI, in a note.
There were decreases in the indices of debt, income and inflation expectation, while, on the other hand, indicators of financial situation of unemployment and expectation of higher value goods shopping record growth.
The rate of indebtedness was the most deteriorated, with fall of 3.1% in October and 6.6% compared with November 2016. Have the expectation of personal income fell 2.6% compared to October and 5.4 percent over a year.
Expectations for inflation worsened 1.2% compared with the previous month and 1.8% in comparison with the previous month. Have the expectation of financial situation improved 0.4% compared with October, but fell 4.8% compared to the previous year. The expectation of unemployment improved 0.6% compared with October and 2.9% over a year earlier. Expectations of higher value purchases increased 2.6% in the month and 1% in the year.