Brazil has just surpassed China regarding consumer sentiment, as the second-largest economy globally slows down and spending purpose on big-ticket items decreases, as per to a Credit Suisse survey. At the Credit Suisse’s AIC (Asian Investment Conference) in Hong Kong, Eugene Klerk—Managing Director of Global Thematic Research at Credit Suisse—said to CNBC that China reported weaker readings in investment intentions correlated to Brazil and India. The “Credit Suisse Emerging Consumer Survey” was released during the conference and found that at present China is at third place with regards to overall consumer sentiment, with India at first and Brazil at second place. Klerk said, “If we see at the data in this year, we uncovered that consumers are most optimistic in India and we also found that consumers in Brazil are becoming a lot more positive. We see an unusual picture in China.”
The survey talked consumers face-to-face in 8 emerging economies: such as India, China, Indonesia, Brazil, Thailand, Mexico, Turkey, and Russia. Durable goods—like luxury items and cars—were most hampered by the turn down in consumer sentiment, the poll found. However, the bank still expects “structural progress” in local brands and goods. Klerk stated he believes this drop down in spending on robust goods is “recurring” in nature. Klerk explained, “The theme of the budding consumer has always been considered as a very structural one. This year’s poll suggests that maybe the flourishing consumer is quite more cyclical than we believed he or she would be.”
Speaking of the trade war, recently, Jack Lew—Ex-Treasury Secretary—warned, “More bumps in the road” prior to the U.S.-China trade deal. A fresh round of trade confers amid American and Chinese officials can aid in bringing an end to the international trade war, but fixing the remaining sticking aspects would be a rocky process.