Brazilians bought less on credit in April.

PE247 - Brazilians are buying less on credit, as demand fell 11,2% in April compared to March. When compared to April of last year, the drop was 9,8%. The data was released today (15) by the consulting firm Serasa Experian.
According to the research, this was the fourth consecutive decline, closing the first four months of this year with a 7,6% drop compared to the first four months of 2011, the worst performance for the period since 2008.

According to economists at Serasa, default rates were a decisive factor in this decline in new financing, as consumers are preferring to pay off their debts first. This is also because having outstanding debts with the bank increases the rigor in approving loans.

This contraction occurred across all income brackets. Among consumers earning between R$ 5 and R$ 10 per month, there was a 12,5% ​​drop in demand for credit in April compared to March. In the segment earning between R$ 2 and R$ 5, the decrease compared to March was 12,3%. Those earning more than R$ 10 and those with salaries between R$ 1 and R$ 2 saw an 11,8% decrease in demand. Meanwhile, among those with monthly incomes between R$ 500 and R$ 1 and those earning less than R$ 500, the decreases were 10,7% and 9,1%, respectively.

In the regional analysis, the decline was also widespread. The largest drop was observed in the South and Southeast regions, with contractions of 15% and 11,6% in April compared to March. In the Central-West, the drop was 9,2%. In the Northeast, demand was 8,5% lower. In the North, there was a 6% decline.