Argentina: Consumer sentiment hits four-month high in May
May 21, 2014
While the recovery in consumer confidence continued in May, sentiment is still at worryingly low levels. The Universidad Torcuato di Tella (UTDT) consumer confidence index rose 3.8% over the previous month to 38.1 points. The reading marked the third consecutive increase and the highest level since January. The index is still firmly entrenched in negative territory and quite far from the 50-point threshold that separates optimistic from pessimistic sentiment.
Consumers’ confidence regarding their economic expectations in the short-term drove the rise in confidence. That said, consumers were also more optimistic regarding both their personal economic situation and their ability to buy durable goods. The relative stabilization of the peso following its devaluation in February bodes well for an improvement in consumer spending and contributed to the aforementioned increases.