Brazil Uncertainty Jumps to Year High as Consumer Confidence Turns Negative

Overview

• FGV’s uncertainty gauge, the IIE-Br, rose 2.2 points to 117.2 in April, the highest reading since April last year.
• FGV said the biggest push came from its Expectations component as experts’ views on the Selic interest rate and inflation spread further apart, while the Media component inched up to 118.3.
• Ipsos reported Brazil’s Consumer Confidence Index fell to 49.2 from 52.2, slipping below neutral and hitting an 11-month low.
• The drop was broad-based, with weaker views on current conditions, jobs, spending and the outlook, and only 32% now saying the country is on the right track.
• Ipsos linked Brazil’s setback to similar declines in the U.S., U.K., Germany, Argentina and Chile, attributing the sour turn to economic fallout from the war in Iran and pressure from higher prices and borrowing costs.