Confidence among Brazilian consumers weakened in January to the lowest level in three months, a survey by the Getulio Vargas Foundation showed Monday.
The seasonally adjusted FGV IBRE consumer confidence index dropped to 87.3 in January from 89.1 in December. Any score below 100 indicates a pessimistic outlook, and the confidence is retreating after rising in the previous four months.
The expectations index declined by 2.5 percent to 91.3 in January, and the current situation index dropped 0.8 points to 82.6.
“Although there are factors favorable to consumption, such as employment, income, and price relief, the negative factors—high interest rates and high indebtedness—seem to be dominating the scenario again this month, reducing confidence and increasing pessimism about the future,” Anna Carolina Gouveia, economist at FGV IBRE, said.
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