Economic confidence indicators show mixed results in Portugal and Brazil

Economic surveys released in late October reveal diverging trends in consumer and business confidence across Portugal and Brazil.

In Portugal, the National Institute of Statistics (INE) reported a decline in consumer confidence for the second consecutive month. This downturn was driven by pessimism regarding household financial situations and the national economic outlook, alongside rising concerns over the cost of living and housing rights. While the services sector experienced a sharp decline in confidence, the manufacturing, construction, and commercial sectors showed signs of recovery.

In Brazil, data presents a more optimistic picture for consumers. The Ipsos Consumer Confidence Index rose to 54.1 points, placing Brazil among the five most confident countries in a global survey of 30 economies. This growth was supported by job security and record federal tax revenue.

Business sentiment in Brazil also showed varied results. The Trade Confidence Index increased, and the National Confederation of Industry (CNI) reported that confidence rose in 27 of 29 industrial sectors due to improved business expectations. However, the services sector remains cautious; despite a slight uptick in the FGV confidence index, economists suggest high interest rates and household debt may limit significant acceleration through the end of the year.