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Serasa Experian: Consumer credit demand in Brazil up 3.2% in H1 YOY

Consumer credit demandin Brazil increased 2.1% in June from the previous month and expanded 3.2% inthe first half year over year, according to data released by credit researchfirm Serasa Experian.

According to the firm's economists, the 3.2% increase in thefirst half, although positive, is lower compared to a 4.8% expansion registeredin the first half of 2015, which indicates a weakening in credit demand byconsumers due to higher interest rates, rising unemployment and depressedconsumer confidence amid the country's economic recession.

Meanwhile, data from credit research firm Boa Vista SCPCshowed that consumer delinquenciesrose 2.8% in the first half year over year. In June, the consumer default rateadvanced 2.6% from May but the monthly rate dropped 8.1% from a year earlier.

The credit firm also attributed the rise in delinquencies tothe increasing deterioration in the Brazilian labor market, which has triggeredhardship on family budgets and subsequently delays in debt payments.

According to the firm, consumer default rates are expectedto maintain an upward trend through the year.