In March, consumer confidence fell again and reached its lowest value since December 2023, while the economic climate indicator fell to levels similar to those of a year ago, according to economic surveys by the National Statistics Institute (INE), released this Monday, 30th.
The international environment, namely the conflict in the Middle East, has put pressure on price expectations.
The IBGE says that the drop in confidence in the last two months was accentuated in March, mainly because of the worse prospects regarding the future evolution of the national economy and the financial situation of families.
Also weighing in, albeit to a lesser extent, were negative assessments of the past financial situation of households and the reduced expectations of making important purchases.
The balance of expectations about the country’s future economic evolution has declined in the last two months and in March reached the lowest level observed since January 2023. In parallel, expectations of price increases increased in the recent three months, registering in March one of the biggest jumps in the series and the highest value since March 2022.
On the business side, the economic climate contracted in March after a slight improvement in February.
Confidence fell particularly in commerce and construction, while it improved in services and manufacturing. In the latter sector, research points to more favorable assessments of finished product stocks and a more robust perception of demand, which has supported a slight increase in the indicator in the last two months.
INE also highlights that businesspeople’s expectations about sales prices have increased, reflecting fears of accelerated inflation linked to tensions in the Middle East, with a potential impact on oil prices.
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