Consumer delinquency rises for 14th consecutive month, up 29.2% in August

Monday, September 12, 2011

Consumer delinquency in Brazil hit a new high in August, up 29.2% from a year ago for the 14th consecutive month of year-on-year expansion, credit information firm Serasa Experian said in a report.

For the first eight months of the year, consumer delinquency increased 23.4% from the same period in 2010. When compared to July, delinquency rose 2.9% in August, its sixth month-on-month expansion in 2011, Serasa said.

According to Serasa economists, the August increase is the result of a restrictive economic environment related to central bank BCB's monetary tightening measures to control inflation, together with seasonal factors, such as fathers' day.

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Serasa expects the payment of the first half of the traditional "13th salary" - in which many companies double the monthly salary in December - in August will help consumers to pay previously acquired obligations.