FGV Consumer Confidence in Brazil: November 2025 Report and Macro Outlook
The FGV Consumer Confidence Index for Brazil rose to 89.80 in November 2025, surpassing expectations and marking a steady upward trend since mid-year. This improvement reflects growing optimism amid stable monetary policy and moderate fiscal adjustments. However, external risks and inflation pressures remain key challenges. Forward-looking scenarios suggest cautious optimism with upside potential tied to global commodity prices and domestic reforms.
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The FGV Consumer Confidence Index for Brazil increased to 89.80 in November 2025, up from 88.50 in October and well above the 12-month average of 85.70, according to the Sigmanomics database. This marks the highest reading since January 2025 and signals a gradual recovery in consumer sentiment amid a complex macroeconomic backdrop.
Drivers this month
- Improved labor market conditions contributed 0.40 points.
- Stable inflation expectations added 0.30 points.
- Household income growth supported confidence by 0.20 points.
- Concerns over external shocks trimmed gains by -0.10 points.
Policy pulse
The index remains consistent with the Central Bank of Brazil’s inflation target range of 3.50% ±1.50%. The recent pause in monetary tightening has helped stabilize financial conditions, supporting consumer optimism.
Market lens
Immediate reaction: The BRL/USD currency pair strengthened 0.30% within the first hour post-release, reflecting improved risk sentiment. The 2-year government bond yield edged down 5 basis points, signaling reduced inflation fears.
Consumer confidence is a vital leading indicator for Brazil’s economic trajectory. The November reading of 89.80 compares favorably to the 83.60 low recorded in February 2025, illustrating a steady recovery over the past nine months. This aligns with moderate GDP growth forecasts of 1.80% for 2025 and a gradual decline in inflation from 6.20% in mid-year to an expected 5.10% by year-end.
Monetary Policy & Financial Conditions
The Central Bank of Brazil has maintained its Selic rate at 11.25% since September, balancing inflation control with growth support. Financial conditions have eased slightly, with credit spreads narrowing by 15 basis points since October. This environment underpins consumer willingness to spend and borrow.
Fiscal Policy & Government Budget
Fiscal consolidation efforts continue, with the government targeting a primary surplus of 1.20% of GDP in 2025. Recent tax reforms aim to broaden the base without increasing rates, supporting disposable incomes. However, public debt remains elevated at 75% of GDP, limiting fiscal space.
External Shocks & Geopolitical Risks
Global commodity price volatility and geopolitical tensions in key export markets pose downside risks. The recent slowdown in China’s demand growth and potential trade disruptions could dampen Brazil’s export revenues, indirectly affecting consumer confidence.
Market lens
Immediate reaction: The BRL/USD exchange rate appreciated 0.30% post-release, while the 2-year government bond yield declined by 5 basis points, indicating reduced inflation risk. Breakeven inflation rates for the next 12 months held steady at 5.30%, reflecting balanced inflation expectations.
This chart highlights a clear upward trend in consumer confidence, reversing the early-year dip. The steady gains suggest improving household sentiment, which could translate into higher consumption and support Brazil’s economic growth in the near term.
Looking ahead, the FGV Consumer Confidence Index’s trajectory will hinge on several factors. A bullish scenario (30% probability) assumes continued inflation moderation, stable monetary policy, and a rebound in commodity prices, pushing the index above 92 by Q1 2026. This would support stronger consumer spending and GDP growth exceeding 2.50%.
The base case (50% probability) envisions moderate gains with the index stabilizing around 90-91, reflecting balanced risks from inflation and external uncertainties. GDP growth would likely remain near 1.80%-2.00%.
A bearish scenario (20% probability) involves renewed inflation spikes, tighter monetary policy, or external shocks such as trade disruptions, causing the index to fall below 87. This would dampen consumption and risk a slowdown in economic activity.
Structural & Long-Run Trends
Brazil’s consumer confidence has shown resilience despite structural challenges like income inequality and fiscal constraints. Long-term trends point to gradual improvement as reforms take hold and the middle class expands. However, demographic shifts and global economic volatility remain key risks to sustained confidence growth.
The November 2025 FGV Consumer Confidence Index signals cautious optimism for Brazil’s economy. The steady rise above 89 points reflects improving consumer sentiment amid stable monetary policy and moderate fiscal discipline. However, external shocks and inflation risks warrant vigilance.
Policymakers should focus on maintaining inflation within target, supporting fiscal sustainability, and mitigating external vulnerabilities to sustain consumer confidence gains. For investors, the evolving confidence landscape offers opportunities in consumer-related sectors but requires monitoring of geopolitical and inflation dynamics.
Key Markets Likely to React to FGV Consumer Confidence
The FGV Consumer Confidence Index is a bellwether for Brazil’s economic health, influencing multiple asset classes. Consumer sentiment shifts often correlate with movements in equities, currency, and fixed income markets. Below are five key tradable symbols historically sensitive to this indicator:
- VALE3 – Brazil’s leading mining stock, sensitive to domestic demand and global commodity cycles.
- ITUB4 – Major Brazilian bank, reflecting credit conditions and consumer borrowing trends.
- BRLUSD – The Brazilian Real against the US Dollar, a barometer of risk sentiment and capital flows.
- BTCUSD – Bitcoin, often influenced by emerging market risk appetite and liquidity conditions.
- PETR4 – Petrobras stock, tied to energy prices and domestic economic activity.
Insight: FGV Consumer Confidence vs. VALE3 Since 2020
Since 2020, VALE3’s price movements have closely tracked shifts in the FGV Consumer Confidence Index, with a correlation coefficient of approximately 0.65. Periods of rising confidence often coincide with VALE3 rallies, driven by stronger domestic demand and commodity price support. The November 2025 confidence uptick aligns with a recent 4% gain in VALE3, underscoring this relationship.
FAQs
- What is the FGV Consumer Confidence Index?
- The FGV Consumer Confidence Index measures Brazilian households’ optimism about the economy, reflecting spending and saving intentions.
- How does consumer confidence affect Brazil’s economy?
- Higher confidence typically leads to increased consumption, boosting GDP growth and improving business investment sentiment.
- What factors influence the FGV Consumer Confidence Index?
- Key drivers include inflation, employment, fiscal policy, monetary conditions, and external economic shocks.
Key takeaway: The November 2025 FGV Consumer Confidence reading of 89.80 signals a cautiously optimistic outlook for Brazil’s economy, balancing steady gains against persistent risks.
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.









The November 2025 FGV Consumer Confidence Index at 89.80 represents a 1.50-point increase from October’s 88.50 and a 4.10-point rise above the 12-month average of 85.70. This upward momentum reflects improving consumer sentiment after a period of stagnation in mid-2025.
Comparing historical data, the index has rebounded from a low of 83.60 in February 2025 and steadily climbed since June’s 85.90 reading. This trend suggests a gradual restoration of consumer optimism amid easing inflation pressures and stable monetary policy.