Most Brazilians spend more than they earn.
For the first time, most families have monthly expenses exceeding their income.
AE - Most Brazilian families reported monthly expenses exceeding their average monthly income in 2010. This data comes from the Consumer Trends survey, conducted by the São Paulo Supermarket Association (Apas) in partnership with Nielsen and Kantar Worldpanel, and released today. According to the survey, in 2010, 53% of families across all social classes reported expenses exceeding their family income, with an average debt level of 1%.
During this period, the national monthly income was R$ 2.146,00, while spending was R$ 2.171,00. This deficit had not been recorded since 2005, when indebtedness reached 3%. The average income in 2005 was R$ 1.337,00, while spending was R$ 1.378,00. Apas points out that the greater availability of credit boosted household consumption. The research shows that, compared to 2009, monthly spending in 2010 increased by 16%, while average income rose by 13%.
The Director of Economics and Research at Apas, Martinho Paiva, explains that in 2010, economic stability led consumers to resort to credit to purchase consumer goods they previously lacked access to. "The desire to consume, coupled with the availability of financing, caused consumers to become intoxicated with credit," he said. Paiva, however, stated that he believes families will balance their monthly income with their expenses in 2011.
The association also predicts that the Central Bank's interest rate hikes and recent government measures will slow consumption growth. Household consumption is expected to continue growing, but at a slower pace, according to Apas. The survey was conducted with a sample of 8.200 households nationwide. The questionnaire was administered in July 2010.