October 26, 2016 / 11:27 AM / 2 years ago

Brazil October consumer confidence highest since December 2014

BRASÍLIA, Oct 26 (Reuters) - Consumer confidence in Brazil
rose for a sixth straight month in October to the highest in
almost two years, on growing expectations of an imminent end to
a two-year recession despite recent signs of prolonged weakness
in the economy.
    The Getulio Vargas Foundation (FGV) index of consumer
confidence released on Wednesday rose to 82.4 in
October, its highest since December 2014, from 80.6 in
    "The recovery in confidence continues to be driven by
expectations," said FGV economist Viviane Bittencourt, pointing
to prospects of lower inflation and interest rates as a reason
for optimism among consumers.
    The central bank earlier this month cut its benchmark
interest rate for the first time in four years, and signaled it
will continue to reduce credit costs over the coming months.
    Rising consumer confidence contrasts with economic
indicators showing Brazil is still mired in recession.
    The central bank earlier this month said economic activity
fell in August at the fastest pace in more than one year.
    Data from other sources show a steep drop in retail sales,
industrial output and services activity.
    Consumer confidence rose the most in October among
low-income consumers, FGV said.
  (level)                  Latest mth  Previous mth   Year ago
 Confidence index          82.4        80.6           66.4
 Current situation index   69.0        68.2           68.9
 Expectations index        92.6        90.1           66.1

 (Reporting by Silvio Cascione Editing by W Simon)
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