17.04.201414:47:00UTC+00Soft Real Wage Bill Growth Rates in Brazil Should Keep Consumption at Bay

Quotes from Barclays Capital:

- Brazil unemployment rate surprised markets to the downside in March,�printing at 5.0%, below our and market expectations (Barclays and consensus: 5.4%). In seasonally adjusted terms unemployment also moved down, reaching 4.8% from 5.0% in the previous month.

�- Real wages marginally improved in March�(+0.1% m/m sa), though not enough to reverse the 0.5% drop in February, leading the�real wage bill to decline for the second consecutive month (-0.1% m/m sa from -0.8% in February).

- In annual terms, the real wage bill increased but�is still soft compared to previous year, despite having risen to 3.0%, from 2.2% in the previous month. Although labor markets remains tight, soft real wage bill growth rates should keep consumption at bay.