MercoPress. South Atlantic News Agency
Brazilian consumers’ confidence at its lowest in more than five years
Tombini said that consumer-price increases in Brazil have remained within the official “tolerance range” for 10 straight years. Brazil's consumer confidence deteriorated sharply in August to its lowest level in more than five years, the think tank FGV said Monday. The consumer confidence index fell to 102.3 from 106.9 in July. The score was the lowest since April 2009, when it was 99.7. In July, the index had risen strongly from April's 103.8.
Both current situation and expectations indexes declined in August. The current conditions index of the survey from the Getulio Vargas Foundation tumbled to 107.2 from 113, the lowest since May 2009, when the score was 103.
The expectations measure eased to 100.1 from 101.2, which was the weakest reading since March 2009, when it read 97.6.
After an expansion of 2.5% in 2013, Brazil's economy is expected to expand less than 1% this year, a rate that economists consider too low for a developing nation.
The consumer-confidence index polls 2,000 families in Brazil's seven largest cities. It measures the willingness of families to make purchases of various types of consumer goods and gauges expectations about employment, income and economic opportunities.
Central bank President Alexandre Tombini said Aug. 23 at a conference in Jackson Hole, Wyoming, that consumer-price increases in Brazil have remained within the official “tolerance range” for 10 straight years.
“Despite inflation persistence that arises from services prices combined with adverse supply shocks, monetary policy has been able to keep inflation under control,” Tombini said.
On Monday Brazil reported a trade deficit of 214 million dollars in the week ended Aug. 24, compared with a 684 million surplus during the previous week.
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Read all commentsThese people in the government and bank just don’t get it.
Aug 26th, 2014 - 11:30 am 0Pissing Mr. Market off is going to end in tears: just look at the fiasco’s The Liar Mantega creates every time he opens his mouth and Dumbass Dilma laps it up!
The real problem is they don’t understand WHO Mr. Market is, incredible as it sounds. You can tell what Mr. Market thinks from the 2,000 families that were interviewed:
“It measures the willingness of families to make purchases of various types of consumer goods and gauges expectations about employment, income and economic opportunities”
Yes, the purchasing public ARE Mr. Market and the government still thinks they can control him!
ALL governments who mess with Mr. Market end up being kicked in the nuts as will Brazil: you mark my words.
Mantega is no more than a puppet for Dilma, and since she understands piss-all about economics, be it micro or macro, it follows that Mantega is just an idiot, for selling his soul to the devil.
Aug 26th, 2014 - 06:16 pm 0Perhaps the Brazilian government has other things in store for the future of brazil, rather than the expected growth they deserve..
Aug 26th, 2014 - 07:19 pm 0Commenting for this story is now closed.
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