Brazil: Consumer sentiment rises in December
Latest reading: The seasonally adjusted consumer confidence index published by the Getúlio Vargas Foundation (Fundação Getúlio Vargas) increased for the fourth month running in December to 90.2, up from November’s 89.8. December’s reading was the highest in a year. Accordingly, the index moved closer to, but remained below, the 100-point threshold, indicating sustained pessimism among Brazilian consumers.
In December, households grew less pessimistic about the economy in the coming months (+95.2 vs +93.8 in November). However, consumers grew more pessimistic about their current situation (+83.4 vs +84.8 in November).
Despite ongoing challenges—high levels of personal debt and default—consumer sentiment continued to improve thanks to a hot labor market and higher purchasing power.
Outlook: In October–December, consumer sentiment averaged above Q3’s level; that said, consumers remained pessimistic. Elevated household debt levels amid high interest rates will remain a key pressure point on consumers and their sentiment going forward.