Brazil: Industrial confidence and consumer sentiment improve in July
The seasonally adjusted consumer confidence index published by the Getulio Vargas Foundation (Fundação Getúlio Vargas) increased to 92.9 in July, up from the previous month’s 91.1. As a result, the index moved closer to, but remained below, the 100-point threshold, indicating softer pessimism among Brazilian consumers.
Similarly, the seasonally adjusted industrial business confidence index jumped to 101.7 in July, improving from June’s 98.4. July’s reading was the strongest since November 2021. Accordingly, the index rose above the 100-point threshold, signaling optimism among industrial firms for the first time since August 2022.
The improvement in industrial business sentiment bodes well for investment in the industrial sector at the start of Q3. Similarly, less downbeat consumer sentiment hints at a resilient private consumption performance in the first month of Q3.