Brazil’s consumer confidence weakened for the third straight month in June to the lowest level in ten months, figures from the FGV IBRE showed Tuesday.
The consumer confidence index dropped to 82.1 in June from 86.9 in May.
Moreover, this was the weakest score since August last year, when it marked 81.4.
The current situation index fell by 5.4 points to 71.8 in June, which was the lowest level since September 2017. Similarly, the expectations index worsened by 4.2 points to a 10-month low of 90.0.
“The May truckers strike contributed to the deepening of the downward trend of confidence that had developed in the previous months,” Viviane Seda Bittencourt, coordinator of consumer survey, said.
“With negative outlooks on the labor market, households are becoming quite conservative with spending, which is expected to negatively impact economic growth in the second half.”
Separately, the think tank revealed that the national index of construction cost rose at a faster rate of 0.76 percent monthly in June, following a 0.30 percent increase in the previous month.
Another report from the FGV IBRE revealed that the construction confidence index worsened to a 7-month low of 79.3 in June from 82.4 in May.