Site icon

Brazil Breaks Record on Income, Jobs and Inflation Satisfaction

Brazilians seem more content with their life and are making positive forecasts about employment and income. The National Consumer Expectations Index (Inec) reached 110.6 points in September, the highest result in the series that began in 1997.

The previous record, 106.3 points, was registered in June 2003, according to a research released today, October 5, by the National Confederation of Industries (CNI).

This optimism is the result of an increase in income, caused by the reduction of inflation and by increases in the minimum wage and in Social Security benefits, according to the executive manager at the CNI Economic Policy Unit, Flávio Castelo Branco.

According to him, the positive forecast for Brazilians is confirmed by the increase in consumption, which should end the year with growth of 4%.

"It is this consumption that is maintaining the growth of the economy," stated Castelo Branco. He recalled that the CNI forecast for growth of the economy this year is 2.9%.

According to the CNI study, which heard 2,002 people all around the country between September 9 and 11, 24% of those interviewed plan to increase purchases in the next three months.

This figure is 0.5% greater than that registered in the second quarter, and 7.6% greater than the figure for the same period in 2005. The disposition to purchase rose and the fear of losing jobs diminished.

According to the Inec, the fear of unemployment index was 104.7 points in September, the lowest result since October 1997, when the research began. The index reveals that the income expectancy rose 9.7% when compared to September 2005, totaling 110.8 points, another historic record.

The consumers also bet on the reduction of prices. The index that measures the expectancy of lower inflation rose to 111.5 points, 17% greater than that registered in September 2005. The higher the indicator, the greater the optimism regarding inflation.

According to the CNI study, the positive feeling about income, employment and inflation increased consumer satisfaction with quality of life, whose index reached 102.2 points, 3% greater than in September 2005.

Next: Brazil’s Petrobras Pours US$ 9 Million in 76 Social Programs
Exit mobile version