Brazilian consumer confidence remains high, survey shows

Brazilian consumers remain optimistic about personal income, inflation, personal debt and the financial situation of their country, said a survey released by the National Confederation of Industry (CNI) Monday.

The positive expectations of consumers reached 114.6 points, on a fixed basis of 100 points (above which indicates optimism), 4.1 percent higher than the same month last year, the National Index of Consumer Expectation showed. The latest reading is also higher than the historical average of 109 points.

There was improvement especially in the expectation of falling inflation and reducing household debt. However, optimism related to employment and expectation of higher-value purchases has decreased.

According to Flavio Castelo Branco, CNI manager of economic policy, the result is positive because the lower confidence related to employment can be just an adjustment.

"In May this indicator rose a lot, and then the fall can be just an adjustment or even a single event like the World Cup, for example. And confidence in personal financial situation remained high, which means that the recent increase in interest rate did not impact on the financial condition of consumers," he said.

The survey, during which 2,002 people were interviewed, was conducted by the CNI between June 18 and 21.

Source:Xinhua