Brazil FGV Consumer Confidence Lowest Since November 2022

(RTTNews) - Confidence among Brazilian consumers weakened further to the lowest level in nearly four years, a survey by the Getulio Vargas Foundation showed on Tuesday.

The seasonally adjusted FGV IBRE consumer confidence index dropped to 84.7 in August from 88.3 in July. Any score below 100 indicates a pessimistic outlook.

The fourth successive decline in confidence was attributed to both the current and expectations indices. The sub-index for expectations fell by 5.4 points to 86.1 in August, and the current conditions index dropped by 0.6 percent to 83.8.

"There was a sharp decline in the indicator of expected purchases of durable goods and in the indicator that measures the perception of the future financial situation of families, reflecting the difficult financial conditions of consumers, who are highly indebted and delinquent, coupled with a context of high interest rates," Anna Carolina Gouveia, economist at FGV, said.

Despite a robust labor market, Gouveia forecasts a slowdown in household consumption in the second half of 2026.

The FGV IBRE index measures consumer sentiment across Brazil's economy and serves as a key barometer of economic health.