National Consumer Confidence Index registered 70 points in April, six less than that measured in March
O National Consumer Confidence Index recorded 70 points in the month of April, six less than what was measured in March. This is the worst result of the indicator since the beginning of the pandemic. That’s because the closer to 100, the greater the confidence. The Northeast region of the country is the most pessimistic, with 63 points. The North, on the other hand, remains the most optimistic region, with 85 points. Midwest recorded 83 points; Southeast, 70; and south, 65. The chief economist at the São Paulo Commercial Association, Marcel Solimeo, explains that the high rates of cases and deaths from Covid-19 and circulation restrictions contributed to this result. “As the expectation of the end of the pandemic is becoming more distant, the confidence of the citizen is also worsening. He becomes less optimistic. With each month that the difficulties of trade restrictions increase, the end of the emergency aid, all of this contaminates the consumer’s state of mind ”, analyzes Solimeo.
Thus, consumers are more cautious with spending, especially in the long run, as Marcel Solimeo explains. “If he thinks he will have better employment conditions, he is even willing to buy higher-value goods, such as a house or car. If he is insecure, he will not go into debt to buy other goods, such as appliances and furniture, which have a higher price ”, says the economist. The National Confidence Index also showed that 66% of Brazilians have either lost their jobs or know someone who has been unemployed in the past six months. In addition, consumers are lacking good prospects for the future. Only 28% of the people interviewed think that the Brazilian economy will be better in a year.
* With information from reporter Nicole Fusco