São Paulo – The Brazilian population remains optimistic regarding the country’s socio-economic behaviour, according to the Families’ Expectation Index (IEF), a survey issued this Tuesday (6th) by the Institute of Applied Economic Research (Ipea). In August, the index stood at 65.2 points, 1.7 point more than in July (63.5 points). Figures ranging from 60 to 80 points are considered an indication of optimism, which is in between the range of great optimism (80 to 100 points), and the moderate range (40 to 60 points).
According to the Ipea, the Midwest Region recorded the highest score in families’ optimism in August (73 points), followed by the Northeast (67.1 points), the Southeast (64.2 points) and the North (61.2 points). The only region in which the index declined was the South, whose rate fell in the moderate optimism range, as it went from 62.6 points in July to 59.6 points in August.
The IEF is a monthly survey conducted among 3,810 households in 214 municipalities across all states of Brazil, covering five topics: national economic situation, personal financial situation, consumption-related decision, indebtedness and the labour market.
Concerning the Brazilian economic situation, in August, 56.8% of those surveyed claimed Brazil will experience better moments in the coming 12 months, a rate higher than in the preceding month (53.2%). In a medium-term perspective, the rate of families to whom the country’s economic situation will worsen in the coming five years dropped from 25% in July to 23.5% in August.
Regarding the financial situation, 73.8% of those interviewed claimed to be in better conditions now than they were a year ago. When asked about consumption of consumer goods, 56.8% of all families claimed that the current moment is favourable, as against 38.3% who believe that the time is not ideal for purchasing goods.
As to perception of indebtedness, 9.7% of all interviewees claimed to be heavily indebted and 52.2% claimed to not be in debt. The average debt of families that declared to be indebted in August was 4,189.68 reals (US$ 2,544.89), lower than the figure for July, which was 4,433.65 reals (US$ 2,693.08). One indicator that is cause for concern, according to the Ipea, is that 38% of all people who have overdue bills stated that they will be unable to meet their obligations.
As to the labour market, 80% of all interviewees declared that they feel safe in their current occupation, which indicates optimism. Expectation of professional improvement grew from 38% in July to 42% in August.
*Translated by Gabriel Pomerancblum
