Intention of household consumption decreases in March, points to CNC

A set of unfavourable factors, consumption as income of the employee, high interest rates, credit, and inflation in high level, helped overthrow the intention of Brazilian consumption earlier this year. That''s what shows the National Confederation of trade in goods, services and tourism (CNC) in the research intention of household consumption (ICF), whose summary indicator showed indentation of 1.6% in March, compared to the previous month, and 29.9 percent before March 2015, to 77.5 points.
With the lowest availability of consumer buying, the entity designs fall of 4.2% in the volume of retail sales for this year – very close to 2015, when the trade showed retraction of 4.3% in sales, the largest of the historical series of the Brazilian Institute of geography and statistics (IBGE), initiated in 2001. "We expect another year of contraction," said Principal Economist, Juliana Serapio.
The Outlook for the coming months are also negatively affected by the current political crisis, which inhibits recovery of consumer confidence-crucial factor so that the Brazilian back to buy more. "Consumer confidence is directly linked to the stability of the political and economic framework," said the Economist.
With the setback, the ICF remained in level less than 100 points, that is, below the zone of indifference, what signals consumer dissatisfaction with their current situation.
One of the most compelling factors for the current negative frame is the weakening of the labour market, noted Juliana. In practice, with the lowest rate of opening of slots, and high unemployment, consumers do not have discretion to maintain high consumption, assessed. "Since last year, the unemployment rate has been growing. Is a factor that hurts consumption, "he said.
In March, the seven topics used for calculation of the ICF showed falls in all comparisons. Compared to February, the most intense negative rates were observed in current consumption level ( -4.4%); consumer perspective ( -2.3%) and time for durable ( -2.2%). These three also had the most expressive retractions, in comparison to March 2015, respectively of 38.4%, 41.2% and 46.2%.