World Economy

Brazil Consumer Confidence Rises

Brazil Consumer Confidence RisesBrazil Consumer Confidence Rises

Consumer confidence in Brazil rose for a sixth straight month in October to the highest in almost two years, on growing expectations of an imminent end to a two-year recession despite recent signs of prolonged weakness in the economy, Reuters reported. The Getulio Vargas Foundation index of consumer confidence released on Wednesday rose to 82.4 in October, its highest since December 2014, from 80.6 in September.  “The recovery in confidence continues to be driven by expectations,” said FGV economist Viviane Bittencourt, pointing to prospects of lower inflation and interest rates as a reason for optimism among consumers. 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. Rising consumer confidence contrasts with economic indicators showing Brazil is still mired in recession.  The central bank earlier this month said economic activity fell in August at the fastest pace in more than one year.

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