Household consumption intentions rise 1.3% in May

The consumption intention of Brazilian families (ICF) increased for the second consecutive month in 2024. The increase was 1.3% in May compared to April. In the annual analysis, the growth of the indicator was 6.4%. The data comes from a survey by the National Commerce Confederation (CNC).

In the monthly comparison, the highlight that encouraged the increase in consumption was the Access to Credit Index, which increased 2.2%. According to the CNC, the result is consistent with the moment the Selic rate is falling. This month, 31.4% of consumers considered it easier to take out credit — the highest percentage since April 2020.

Another factor that contributed to the growth in consumption of Brazilian families is the increase in employment and income rates, as explained by CNC’s chief economist, Felipe Tavares.

“With the improvement in the job market, with the improvement in family income and the reduction in Brazilian interest rates, families began to understand that now is the time to purchase goods. With a higher ticket, such as durable goods, it is an appropriate time.”

According to CNC research, with data from the General Register of Employed and Unemployed Persons (Caged), the formal job market in Brazil advanced 1.6% in the first quarter of 2024.

With the current favorable scenario, the Household Consumption Outlook grew by 1.1% in May and by 3.8% in the annual analysis. According to the CNC’s assessment, the indicator is at a satisfactory level (105.8 points), unlike the current consumption indicator which is still at 88.1.