Brazil: Consumer and industrial sentiment deteriorate in October
Latest reading: The seasonally adjusted consumer confidence index published by the Getulio Vargas Foundation (Fundação Getúlio Vargas) fell to 93.0 in October from September’s 93.7. October’s deterioration signaled a reverse in the four-month streak of improvements since June. As a result, the index moved further below the 100-point threshold, indicating greater pessimism among Brazilian consumers.
In addition, the seasonally adjusted industrial business confidence index receded to a four-month low of 99.9 in October from September’s 100.5. As such, the index dipped below the 100-point threshold, signaling marginal pessimism among industrial firms.
Outlook: Taken together, both consumer and industrial business sentiment data hint at a slow start to the fourth quarter for private consumption and investment in the industrial sector, respectively. The recent interest rate hike by the Central Bank and expectations of additional increases as inflation accelerated in September likely dampened sentiment.