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Consumer confidence in Brazil rose to near 2-year high during the month of October following growing optimism that the country’s prolonged state of recession could be ending soon, despite signs of continuing slowness in the economy.
Brazil’s index of consumer confidence rose to 82.4 in October, its highest since December 2014, from 80.6 in September, data released by the Getulio Vargas Foundation (FGV) showed Wednesday. Rising consumer confidence contrasts with economic indicators showing Brazil is still drowned in recession.
"The recovery in confidence continues to be driven by expectations," Reuters reported, citing Viviane Bittencourt, Economist, FGV.
Consumer confidence rose the most in October among low-income consumers, the data showed. However, data from other sources show a steep drop in retail sales, industrial output and services activity.
Meanwhile, the central bank earlier this month cut its benchmark interest rate for the first time in four years, and signaled it will continue to reduce credit costs over the coming months, Reuters reported.
