July 25, 2014 / 1:40 PM / 3 years ago

Brazil's consumer confidence improves for second month in July

By Silvio Cascione
    BRASILIA, July 25 (Reuters) - Consumer confidence in Brazil
rose for a second straight month in July, a private survey
showed on Friday, suggesting the World Cup soccer tournament
helped counter a recent wave of pessimism in Latin America's
largest economy.
    The consumer confidence index measured by the
think tank Fundação Getúlio Vargas (FGV) rose to 106.9 in July
from 103.8 in June.
    Sentiment about current economic conditions improved sharply
as the World Cup ended on July 13 without major incident. 
    The share of consumers who say the economy is doing "badly"
dropped to 41.0 percent from 44.5 percent, according to the
    Consumer confidence had dropped steadily since April 2012 as
stubbornly high inflation reduced consumers' purchasing power
and weak economic growth made salary gains less certain. 
    The recent improvement is welcome news for President Dilma
Rousseff, who has struggled to maintain a comfortable lead in
her campaign for re-election. 
    But Viviane Seda, who oversees the survey at FGV, warned the
recent trend may not last long.
    "Higher confidence is good news, but the numbers seem to
have been partly influenced by the World Cup. We need to wait
for the next numbers to say if this makes for a solid upward
trend," she said in a note.
  (level)                  Latest mth  Previous mth   Year ago
 Confidence index          106.9       103.8          109.7
 Current situation index   113.0       109.6          110.3
 Expectations index        101.2       100.7          107.0

 (Editing by Bernadette Baum)

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