Brazil’s consumer confidence index fell for a fourth consecutive month in August, dropping to its lowest level since November 2022, according to data released Tuesday by the Fundação Getúlio Vargas (FGV).
The Índice de Confiança do Consumidor (ICC) declined 3.6 points to 84.7, marking the weakest reading since the end of 2022 when the index stood at 83.5. The current situation index slipped 0.6 point to 83.8, while the expectations index tumbled 5.4 points to 86.1, the lowest since July 2022.
FGV economist Anna Carolina Gouveia attributed the decline to deteriorating household sentiment on both present conditions and future prospects. The results were broadly consistent across income brackets, with sharp declines in indicators tracking planned durable goods purchases and household financial outlooks.
Gouveia noted that the consecutive drops signal a slowdown in household consumption for the second half of the year, despite a still-resilient labor market. High consumer debt, rising default rates and elevated interest rates continue to weigh on household finances, she said.
The August reading follows four straight monthly declines, underscoring growing caution among Brazilian consumers amid tighter financial conditions.
