June 27, 2016 / 12:07 PM / 2 years ago

Brazil's consumer confidence rises in June to highest in a year

BRASILIA, June 27 (Reuters) - Consumer confidence in Brazil
rose in June to the highest in one year, boosted by a sharp
improvement in expectations about the future following the
impeachment of President Dilma Rousseff.
    The Getulio Vargas Foundation index of consumer confidence
rose to 71.3 in June from 67.9 in May. A gauge of expectations
advanced to 77.1, from 71.1 in May.
    Consumer confidence had plunged to record lows as Brazil's
economy entered its worst recession in probably more than a
century and unemployment surpassed 10 percent. 
    Rousseff, suspended in May to face a Senate trial for
allegedly breaking budget laws, was replaced by interim
President Michel Temer.
    While expectations improved, sentiment about current
conditions worsened in June from May. An index on the current
situation fell to 64.7 in June from 65.5 in May.
    "There is a gap between consumers' expectations about the
next few months and their satisfaction with the current
situation," FGV economist Viviane Bittencourt said in a
statement. "I believe we will still see consumption falling for
a few quarters before it starts to grow again."

  (level)                  Latest mth  Previous mth   Year ago
 Confidence index          71.3        67.9           73.2
 Current situation index   64.7        65.5           75.3
 Expectations index        77.1        71.1           73.1

 (Reporting by Silvio Cascione; Editing by Bernadette Baum)
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