Brasília, April 1, 2004 (Agência Brasil) - The National Index of Consumer Expectations (INEC), an opinion poll on the Brazilian economy, conducted by the National Confederation of Industry (CNI) between March 20 and 25 in 151 Brazilian muncipalities, found that fear of unemployment affects 63% of the Brazilian population. The results of the survey were announced today by the CNI.

Among the 2000 respondents, 40% affirm that their fear of losing their jobs is great, while 23% said that their fear of unemployment is small. Only 28% don't consider unemployment a real possibility, and 9% are already unemployed.

The poll also asked them about their expectations for unemployment in the next six months. For 60% of the respondents, the situation will deteriorate, while 22% believe that nothing is going to change. 18% of those interviewed hope for an increase in the number of job offerings.

According to the survey, Brazilian consumers have no intention to loosen their belts very soon when it comes to consumption. Only 16% of the interviewees intend to buy more in the next three months. The majority (52%) intend to maintain their levels of spending, and 32% want to spent less.

According to the INEC, 51% of the population believe that inflation will rise over the next six months. while 35% think that the current rates will be maintained. 14% are betting that inflation will decline.

In spite of this, 83% of Brazilians have a positive expectation for the year, according to the study.

Another bet has to do with the tendency for personal income in the next six months. 32% believe it will increase, 19% that it will decline, and 49%¨that it will remain unchanged.

Translator: David Silberstein