Consumer Confidence Index accommodates in April

The Consumer Confidence Index (ICC), measured by the Brazilian Institute of Economics of the Getúlio Vargas Foundation, IBRE FGV, dropped 0.2 points in April, reaching 86.8 points. In quarterly moving averages, the index advanced 0.3 points after four months of decline, remaining at 86.1 points.

Economist Newton Ferreira explains the variation of the index: “If we take into account the quarterly moving averages, this ICC increases by 0.3 points, after four months of decline. I mean, it is contradictory to use data such as quarterly moving averages to smooth these variations. There is a lot of volatility and discrepancy in this index, which does not help us to look to the future, especially for low-income families”, he clarified.

The economist also highlighted what pulled the index down this month and said that, in cases like this, it is important to analyze upcoming events to have medium-term expectations. “It is believed that the intention to purchase durable goods will cause this reduction in the consumer confidence index for the coming months, we have to wait for this development”, he analyzed.

Instability in the price of essential products is pointed out by executive producer Robson Ribeiro as a cause of consumer distrust. “I feel a little uncomfortable when I go shopping in the market, yes, because every day the price fluctuates. And I remember a time when we went to the market and there was someone doing those markdowns, with those little machines, and I thought it was horrible. We would buy, for example, in the morning, 1 kg of beans for a price and when it was later there would be a new price change, so I am afraid of those times ”, he warned.

The intention to purchase durable goods was the item that most influenced the drop in the ICC in April. The indicator retreated 4.3 points, reaching 80.5 points, losing 55% of the previous month’s gains, especially in the lower income brackets. The indicator that measures perspectives on the future situation of the economy acted in the same direction, which fell by 0.4 points, registering 112.4 points. In the opposite direction, the indicator that measures perspectives on the future financial situation of the family increased by 3.5 points, reaching 100.1 points, the highest result since December 2022.

The April result was influenced mainly by the worsening of consumer confidence with family income below R$2,100, whose indicator dropped 7.9 points after rising 4.0 points in March. Only in families with higher purchasing power do they reach the level of 90 points. In the ranges with family income above R$ 4,800.01, there was an increase in the indicator. The advance is the result of improved expectations for the coming months, accompanied by relative stability in the perception of the current situation.