The Household Consumption Intent Index (ICF) has risen for the second consecutive month, following a series of four declines. In September, the indicator showed growth compared to the previous month, increasing from 86.5 points in August to the current 87.5 points.
The ICF is calculated monthly by the Federation of Trade in Goods, Services, and Tourism of the State of São Paulo (FecomercioSP) and ranges from zero to 200 points.
Of the seven items analyzed, six indicated an increase compared to August.
Although families in São Paulo have improved their outlook for the future, in the short term, spending is still quite restrained, according to the Federation. The item “Current Consumption Level” remained technically stable compared to August.
Overall, however, they say it is still a bad time to acquire durable goods, such as refrigerators, stoves, TVs, etc.
On the negative side is the item “Access to Credit.” In any case, there is a significant percentage of families in São Paulo that encounter difficulties in obtaining financing for installment purchases.
According to FecomercioSP, the ICF result for September still indicates a recovery process in satisfaction following the truck drivers’ strike that occurred in May. Most families remain dissatisfied with the country’s economic conditions. Inflation is low but on the rise, according to the Entity.
With increasing indebtedness and delinquency, banks have become more selective with credit, making it harder for families to consume. FecomercioSP emphasizes again that it is important for investments to return in order to generate jobs, which will increase consumer confidence, making them feel more secure in spending more. Thus, with the current political and economic uncertainties, the ICF is likely to remain fluctuating around 90 points, which somewhat dampens entrepreneurs’ expectations for the remainder of the year.
Source: FecomercioSP Press