Brazil: Consumer sentiment improves in April; industrial sentiment drops to one-year low
Latest reading: The seasonally adjusted consumer confidence index published by the Getulio Vargas Foundation (Fundação Getúlio Vargas) rose for a second month running in April, coming in at a three-month high of 84.8 (March: 84.3). As a result, the index moved closer to, but remained below the 100-point threshold, indicating deep pessimism among Brazilian consumers.
Conversely, the seasonally adjusted industrial business confidence index dropped to 98.0 in April, down from March’s 98.4. The print was the joint-lowest in a year. As such, the index moved further below the 100-point threshold, signaling an increase in pessimism among industrial firms.
Outlook: Elevated interest rates, prospects of additional rate increases and rising inflation are likely to hold sentiment hostage in pessimistic territory in the coming months.