(MENAFN- Brazil-Arab News Agency (ANBA))
São Paulo – Household Spending Intention (ICF, in the Portuguese initialism) in Brazil grew 2% in July, achieving the second consecutive high. The index reached 68.4 points, the highest level since April. The result was 3.5% above that registered in the same period of 2020.
However, it remains below the satisfaction level (100 points). The results of the survey, carried out by the Brazilian Confederation of Goods Trade, Services, and Tourism (CNC), were released this Wednesday (21) in Rio de Janeiro.
“The greater confidence of families in the stability of the positive trend in the labor market, the availability of emergency aid, and an increasing portion of the population already vaccinated favored consumption conditions,” said, in a statement, the president of CNC, José Roberto Tadros.
Consumption in the spotlight
As in June, all sub-indices of the survey recorded positive results, with highlights on the Consumption Outlook, which rose 5.1% compared to June, reaching 66.8 points. The index presented the highest growth in the month and revealed an improvement in the perception of Brazilians regarding future purchases.
“Families expect that this more positive economic environment perceived in the short term will be extended to the long term,” stated the economist at CNC in charge of the research, Catarina Carneiro da Silva.
The Current Consumption Level also improved, advancing 2.2%, reaching the highest level since March this year (53.1 points).“This increase was a result of the improvement in consumption conditions, with a reduction in the percentage of families who consider their consumption to be lower (59%, against 60.3% last month and 62.6% in July 2020), and even more intense growth than in the previous month (4.7%) in the perception of the timing for the purchase of durable goods,” said the economist.
Despite remaining as the lowest index in July, the Durable Goods Purchase Timing, which assesses what consumers think about the purchase of goods such as appliances, electronics, cars, and real estate, attained the highest level since April and soared even more intensely than in the previous month (4.7%), reaching 40.8 points.“In the wake of this advance, there was a reduction in the percentage of families who believe it is a bad moment for purchases of this type of product: 77.2%, below the 77.7% of the previous month and 78% in July 2020,” reported the CNC.
Translated by Elúsio Brasileiro
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