The National Confederation of Commerce’s family consumption intention index dropped this month, measuring how willing households are to spend in the near future. Higher inflation and interest rates have tamed family expenditures, as access to credit has become more expensive while consumer goods prices have jumped significantly.
The findings corroborate results from a survey by consumer protection service Procon, which highlighted that 70 percent of consumers in São Paulo claim to have lost revenue during the pandemic. Over 90 percent say that essential goods such as food, electricity, and fuel have eaten up a massive chunk of their household budgets.
Still, there is hope of a rise in sales during the holiday season, with employment numbers seeing a slight improvement.