A man wearing a protective shield is seen at a supermarket in Sao Paulo, Brazil, on June 25, 2020. (Xinhua/Rahel Patrasso)

 
The confidence of Brazil's retail trade sector continued to recover in August for four consecutive months, after the initial impact of the COVID-19 pandemic, Brazilian think tank Getulio Vargas Foundation (FGV) said on Tuesday.

Brazil's retail trade confidence index (ICOM) rose by 10.5 points from July to reach 96.6, according to a survey by the economic think tank.

"Retail trade confidence continues to recover, with a significant increase in August, gaining 92 percent of the confidence lost since the beginning of the pandemic," the FGV said.

The result was mainly attributed to "the improvement in perception about the current moment," with an increase in optimism about the coming months, the FGV said.

The Present Situation Index, a subindex measuring overall consumer sentiment, advanced 13.6 points to 102, the highest level since August 2013, while the Expectations Index, a component of the Consumer Confidence Index, rose 6.8 points to 91.3, the highest level since the beginning of the pandemic.

"Despite the positive results, the speed of recovery has not been homogeneous between segments. Consumers are being cautious and uncertainty remains high, making it difficult to prepare the clearest scenarios of the trend of confidence in the coming months," the FGV added.