Household Consumption Intention (ICF) continued to advance in July. With a rise of 1.2%, the index calculated by the National Confederation of Commerce in Goods, Services and Tourism (CNC) reached 80.7 points, once again surpassing the results of the same month in the 2 previous years, during the height of the pandemic. of covid-19.
According to the CNC, all the indicators in the survey showed an increase, however, most registered a deceleration in relation to June.
The highlight was the Current Income indicator, which presented the most relevant monthly increase of the ICF, of 2.4%, and the second largest annual increase, of 23.5%. The CNC’s president, José Roberto Tadros, believes that the advance was driven especially by families earning up to ten minimum wages, a group that showed an increase of 2.6% in this index.
“The successive growths in the real income of families, supported by the income support measures, led to an improvement in this perception”, said Tadros, in a note.
The Current Consumption Level indicator had the second highest monthly growth, at 2.1%, a more significant advance than the 1.2% registered in the previous month. According to the survey, this increase was driven by families with earnings above ten times the minimum wage, which, due to the fact that they have more resources for non-essential purchases, had an increase of 2.9%.
The lowest growth in the month was due to the Consumption Perspective Index, which advanced only 0.2% in relation to June. The CNC economist responsible for the analysis, Catarina Carneiro, estimates that families should be more cautious in their purchases in the coming months, especially the portion with income below ten minimum wages, a group that had the only monthly drop (0.1%). in that item.
“Even with current consumption advancing, the economic environment with higher prices and interest rates led to a moderation scenario”, he said.
Labor market
According to CNC, indicators related to the labor market stood out positively in July. The employment indicator had the highest score of the month, with 108.4 points, and Professional Perspective appeared next, at a satisfactory level, something that had not happened since April 2020, recording 100.3 points. According to the analysis, the numbers also indicated that the majority of consumers (45.3%) had a positive outlook for the job market in the next quarter, a fact also unprecedented since April 2020.
Also according to the survey, most of the employment opportunities are being directed to the youngest, providing new income for this group of consumers. As a result, the portion of people in the age group below 35 years old showed satisfaction in the Current Income indicator, taking the indicator to reach 102 points, while the group above 35 years old recorded 84.1 points.
