Argentina: Consumer sentiment declines in August
August 25, 2016
In August, the Universidad Torcuato di Tella (UTDT) consumer confidence index decreased from the previous month’s reading of 45.6 to 42.8. As a result, the index remains below the 50-point threshold separating pessimistic from optimistic sentiment. Confidence among consumers has been negatively affected by the reforms that the Macri administration is undertaking, which have led to massive job cuts and a high rate of inflation.
In August, consumers were much more pessimistic regarding their view of the country’s economic perspectives for one and three years ahead. Households’ assessments regarding their expected personal situations in the coming year also experienced a sharp decline. In addition, in August, the sub-index representing consumers’ willingness to make major purchases deteriorated significantly over July’s figure.
Author: Dirina Mançellari, Senior Economist