São Paulo – The Consumer Confidence Index (ICC), measured by the Federation of Commerce of the State of São Paulo (Fecomercio), hit a record-high level in late 2009. In December last year, the index reached 155.2 points, representing growth of 1.3% compared with November and of 22.2% compared with the same month of 2008.
According to the Fecomercio, the record is due to improved employment and income, but also to a weak basis of comparison in 2008, when consumer mood was strongly affected by the international crisis. In December 2008, the ICC recorded 127 points.
In the second half of 2009, the ICC showed a trend of gradual recovery of consumer confidence, which had been impacted by the crisis. Not including the months of August, during which it remained stable, and November, with a 0.7% reduction, the index recorded positive results in all other months in the second half.
According to the Fecomercio, the combination of improved employment and income and the government’s anti-crisis actions was a key factor in sustaining the growth of confidence.
The ICC is comprised of two sub-indexes: the Index of Current Economic Conditions (ICEA) and the Consumer Expectation Index (IEC). The ICEA, which measures the short-term perceptions of consumers, recorded a 4.1% increase in December 2009, having reached 149.7 points.
The Consumer Expectation Index (IEC), which measures consumers’ medium- and long-term perception, however, had a slight reduction of 0.3% in December, having totalled 158.9 points.
*Translated by Gabriel Pomerancblum
