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Consumer confidence in Brazil at the lowest since 2009

Consumer confidence is rising across the world compared to last year, according to a recent report by Nielsen. However, the Latin American region shows contrasted scores with Brazil reaching its lowest level since 2009 while optimism progresses in Argentina and Chile.

Global consumer confidence started 2015 with an index score of 97- an increase of one point from fourth-quarter 2014 and from a year-ago, according to the Nielsen Global Survey of Consumer Confidence and Spending Intentions, which measures perceptions of local job prospects, personal finances and immediate spending intentions, among more than 30,000 respondents with Internet access in 60 countries.

(click on the image to enlarge it)

(click on the image to enlarge it)

"While confidence across global regions remained relatively stable in the first quarter, there is considerable variation across different markets,” said Louise Keely, senior vice president, Nielsen, and president, The Demand Institute. “In the first quarter of this year, the key emerging markets of Brazil and Russia saw large declines in confidence for the second consecutive quarter, with the drop in oil prices and the political instability in Brazil. China dropped another index point at the start of this year, which comes after a four-point decline in the previous quarter, reflecting the recent slowdown in GDP there.

Latin American confidence uneven

Actually, confidence increased slightly or remained stable in every region except Latin America. Of seven Latin American markets, Chile (87) and Argentina (75) showed consumer confidence gains of six and eight points, respectively, while the region’s economic engine, Brazil (88), continued to fall for the second consecutive quarter, as confidence declined seven points to the lowest level since 2009. Confidence in Venezuela (65) also fell five points, while Peru’s score (99), the highest in the region, dropped two points in the first quarter. Confidence in Colombia held steady at 94 from fourth-quarter 2014.

In Brazil, sentiment about future job prospects declined 10 percentage points to 27% - a new low for the country, while personal finances sentiment decreased six percentage points to 60%, the second lowest level in 10 years. The number of Brazilians who believed they were in recession increased to 85% from 73% the previous quarter and from 55% from a year ago.

In Brazil, the results reflect the uncertainty over the country’s ability to increase growth rates in the short-term, return to more moderate inflation levels and avoid further unemployment increases,” said Luis Arjona, country manager, Nielsen Brazil. “Concerned with the overall economic environment, Brazilian consumers have become more conservative with their disposable income, reducing out-of-home spending, while buying more on planned trips at grocery stores. They are also increasing the share of grocery spend at discount stores and reducing spend on impulse categories.

Source: Nielsen

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