The Consumer Confidence Index (ICC), calculated by the Brazilian Institute of Economics (FGV/IBRE) decreased 1.7% between January and February 2014, when it went from 108.9 to 107.1 points. With this result, the index remained below the historical average for the twelfth consecutive month and reached the lowest level since May 2009 (103.6 points).

According to IBRE, the decrease of the ICC was influenced mainly by the deterioration of the valuations about the present moment: the Current Situation Index (ISA) decreased 2.9%, to 112.3 points, the lowest since July 2013 (110.3). The Expectations Index (EI) decreased 1.0%, going from 105.6 points to 104.5 points - the lowest since September 2011 (104.1).

The institute also pointed out that the degree of consumer satisfaction with respect to the general situation of the economy continues to decline: the proportion of consumers who considered the situation as good decreased from 14.2% to 15.2%, while those who evaluated it as bad increased from 35.7% to 41.0%. The synthesis indicator thus remains at 74.2 points, the lowest since July 2013 (68.5).

In the upcoming months, consumers were also less optimistic. The indicator that measures the degree of optimism regarding the future state of the economy decreased 3.8% in February to 99.5 points, the lowest level since March 2009 (95.9). The share of consumers who expect an improvement decreased from 26.5% to 26.0% and those who expect deterioration increased from 23.1% to 26.5%.

The next Consumer Survey?s results will be released on March 24. For more information, please click here (in Portuguese).