Brazil: Industrial confidence stable and consumer sentiment improves again in August
The seasonally adjusted consumer confidence index published by the Getulio Vargas Foundation (Fundação Getúlio Vargas) rose for a third consecutive month in August, coming in at 93.2, up from July’s 92.9. As a result, the index moved closer to, but remained below, the 100-point threshold, indicating softer pessimism among Brazilian consumers.
Meanwhile, the seasonally adjusted industrial business confidence index was unchanged at July’s 101.7 in August, marking the joint-strongest result since November 2021. Accordingly, the index remained above the 100-point threshold, signaling optimism among industrial firms for the second time since August 2022.
August’s industrial business sentiment result bodes well for investment in the industrial sector in Q3. Similarly, less downbeat consumer sentiment hints at a resilient private consumption performance in the first two months of Q3.