Brazilians are willing to spend more this Mother’s Day

Sons and daughters will have to dig deeper into their pockets this Mother’s Day. The 27 gift options of products and services selected for the survey averaged a 4.76% increase between May 2016 and April 2017, above the inflation rate accrued in the same period (4.17%). Nevertheless, sales for the second most important date for commerce may give second wind to the sector. A survey by FGV’s Brazilian Institute of Economics (IBRE) shows a slight improvement in Brazilians’ willingness to purchase gifts for Mother’s day. The indicator that measures willingness to spend rose from 51.4 points in 2016 to 59.4 points this year.
The ratio of consumers who indicated they will spend less fell 7.2 points compared to last year, dropping from 51.8% to 44.6% out of 2,047 respondents. Meanwhile, the ratio of those who plan to spend the same amount rose 6.3 points, from 45.0% to 51.4%. According to economist and Consumer Survey coordinator Viviane Seda, the results reflect the sluggish recovery of the country’s economy.
“The modest recovery of consumption prospects is linked to a slight improvement in the financial situation of households, stemming from lower interest rates, the falling inflation, and the release of idle Government Severance Indemnity Fund (FGTS) accounts to reduce debt and promote consumption,” said the researcher.
According to the survey, 47.3% of respondents plan to buy items in the Clothing category, such as blouses, shirts, and dresses. Perfumery is mentioned by 9.4% of respondents, followed by Flowers (5%), and Footwear (4.7%). Of all respondents, 24.7% stated that they would buy other products.
Although the average inflation rate for the most consumed items in this period has stayed above the average recorded by the Consumer Price Index (CPI), buying women’s clothing is cheaper than it was last year. The group recorded a variation of -1.27%. Cell phones (-4.05%) and cameras (-0.12%) also recorded lower prices. On the other hand, perfumes (7.92%) and footwear (2.81%) recorded increases.
“In fact, services had the greatest rigidity in the survey. Almost half of the basket remains with durable goods, and the other half with services. Since credit is restricted and demand is low, durable goods did not increase so much,” said André Braz, coordinator of IBRE’s Consumer Price Index (CPI).
Among the services, which recorded an average increase of 6.41%, none recorded variations below inflation. The items that contributed the most to such increase were theater (36.66%), musical performance (9.79%), and movie theaters (6.91%).
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