Rio de Janeiro, Brazil (4E) – The consumer confidence index in Brazil declined in May to the lowest level in five years, due to the South American nation’s weak economic activity and inflationary pressures, according to the Getulio Vargas Foundation (FGV) report released Friday.
The consumer confidence index by FGV for May was 102.8 points, compared with 106.3 in April. The reading is the lowest level since April 2009, when it hit 99.7 points. The sentiment index has a point range of between 1 and 200, with 100 considered as neutral.
After Brazil’s economy grew by just 2.3 percent in 2013, it is expected to rise less than 2 percent this year, which economists believe is too low for a developing country.
Brazil’s weak economic performance also came amid rising inflation, which is about 6.3 percent a year, near the central bank’s upper limit.
Data used for the consumer confidence index comes from a poll of 2,000 families in Brazil’s seven biggest cities. It surveys the willingness of families to buy several types of consumer goods and measures outlook on income, employment and economic opportunities.