Brazil's consumer confidence improves for second month in July
By Silvio Cascione BRASILIA, July 25 (Reuters) - Consumer confidence in Brazil rose for a second straight month in July, a private survey showed on Friday, suggesting the World Cup soccer tournament helped counter a recent wave of pessimism in Latin America's largest economy. The consumer confidence index measured by the think tank Fundação Getúlio Vargas (FGV) rose to 106.9 in July from 103.8 in June. Sentiment about current economic conditions improved sharply as the World Cup ended on July 13 without major incident. The share of consumers who say the economy is doing "badly" dropped to 41.0 percent from 44.5 percent, according to the survey. Consumer confidence had dropped steadily since April 2012 as stubbornly high inflation reduced consumers' purchasing power and weak economic growth made salary gains less certain. The recent improvement is welcome news for President Dilma Rousseff, who has struggled to maintain a comfortable lead in her campaign for re-election. But Viviane Seda, who oversees the survey at FGV, warned the recent trend may not last long. "Higher confidence is good news, but the numbers seem to have been partly influenced by the World Cup. We need to wait for the next numbers to say if this makes for a solid upward trend," she said in a note. (level) Latest mth Previous mth Year ago Confidence index 106.9 103.8 109.7 Current situation index 113.0 109.6 110.3 Expectations index 101.2 100.7 107.0 (Editing by Bernadette Baum)
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