Brazil consumer intention falls for seventh consecutive month

The Family Consumption Intention (ICF) index, measured by FecomercioSP, declined by 0.2% in September to 110.7 points. This marks the seventh consecutive monthly drop since March, although the index remains above the 100-point neutrality line and has increased by 4.6% compared to the same period last year.

Data indicates a divergence in consumer behavior. While the labor market and income levels provide support—with the current employment component remaining resilient at 141.2 points—high interest rates, household debt, and budget constraints are limiting spending capacity, particularly for purchases requiring financing.

Additionally, professional expectations have deteriorated, with the professional perspective component falling 1.7% in the month to 108.8 points, representing its fourth consecutive monthly decline and a 9.4% drop compared to the previous year.