CNI: Consumer expectations rose 3% in July.

From Agência Brasil

The National Consumer Expectation Index (Inec) increased by 3% in July compared to June. The Inec reached 109,5 points in that month, according to research released today (31) by the National Confederation of Industry (CNI). Despite this, the CNI considers that the confidence of Brazilians is still low. This month's Inec is 0,5% lower than that of July last year.

According to the CNI (National Confederation of Industry), the increased confidence is primarily a result of improved expectations among Brazilians regarding inflation, unemployment, and personal income. "Some consumers who, in recent months, expected a drop in income and an increase in inflation and unemployment, have come to believe in the stability of these indicators," says the CNI.

The index of expectations for personal income growth over the next six months increased by 7,7% in July compared to the previous month. The indices of expectations regarding inflation and unemployment increased by 7,1%. The greater the increase in these indices, the more optimistic the outlook.

The improved assessment of the financial situation also contributed to the increase in consumer confidence in July. "The indicator increased by 5,3%, reflecting a smaller number of consumers who perceived a worsening of their financial situation in the last three months," says the CNI (National Confederation of Industry). "The index of higher-value purchases fell by 3,3%, which points to a reduction in the expectation of consuming these goods," the research highlights.

The CNI survey was conducted in partnership with Ibope Inteligência and polled 2.002 people across the country between July 18 and 21.