Consumer confidence rises, but there is still caution to spend

The consumer confidence index, measured by Fundação Getulio Vargas (FGV), advanced 1.1 point in August, to 89.2 points, the highest value since April of that year (89.5 points). Viviane Seda Bittencourt, coordinator of the polls, says that the result shows a recovery of the current situation but there is still a decline in expectations. "Although consumers are betting on an improvement in the financial situation of families in the coming months, the impetus to consume continues to decline, showing that all income classes are cautious. This is related to the sustainability of the family budget recovery and the level of family indebtedness, since the more optimistic consumers are those with less purchasing power and, possibly, over which there will be a greater impact of Release of FGTS resources in the coming months. However, the prospects of these consumers on the labour market continue to fall, "he explains. For the second consecutive month, satisfaction in relation to the current moment improved, while expectations for the next few months worsened. The current situation index increased 3.4 points, to 78.7 points, the highest value since April 2015 (78.9), while the index of expectations declined 0.5 point, to 97.2 points, remaining at a level below the neutral levels of 100 points for the fifth consecutive month. The analysis by income ranges shows that there was an increase in consumer confidence with lower purchasing power (monthly family income up to R $4,800) and a decline for higher income consumers (monthly family income above R $4,800). The highlight was for consumers with income up to R $2,100, whose increase was 5.2 points reaching 89.5 points, influenced by an improvement of expectations related to a very favorable perspective of the financial situation of families in the coming months, Possibly linked to the release of FGTS resources, considering that there is no optimism about the labour market. In relation to the economy, consumer assessments have improved for the third consecutive month. The indicator that measures the degree of satisfaction with the economy at the moment has risen 1.9 point, reaching 82.8 points, level still very low in historical terms. For the following months, the prospects also advanced, the indicator that measures optimism in relation to the economy rose 2.6 points, to 118.0 points, accumulating 10.0 points in trend of high started in May of that year.