Brazilian consumers showed an improvement in confidence for the third consecutive month in November, reaching the highest level since the end of 2024, according to data from the FGV (Fundação Getúlio Vargas) released on Monday (24).
FGV’s Consumer Confidence (ICC) Index rose 1.3 points during the month, reaching 89.8 points, the highest level since December 2024 (91.3).
“Consumer confidence indicates a gradual recovery path, rising for the third month in a row. There has been a broad improvement across income groups, both in perceptions of the current situation and in expectations,” said Ana Carolina Gouveia, economist at FGV Ibre.
The ISA (current situation index) rose 1.8 points during the month, reaching 84.8 points, the highest level since December 2014 (86.7). The IE (expectations index) rose by one point to 93.8 points.
However, Gouveia warned of the effects of a rise in the base interest rate, as the Selic interest rate currently stands at 15%.
“The improvement in confidence in recent months reflects the maintenance of a strong labor market and, mainly, the recent decline in inflation,” the economist commented. “Despite the positive signs, continued high interest rates could change this dynamic through a slowdown in the economy, and due to the context of rising debt and defaults among households.”