Argentina: Consumer sentiment hits six-month high in July
July 22, 2014
The Universidad Torcuato di Tella (UTDT) consumer confidence index rose 2.0% over the previous month to 42.8 points in July. The reading marked the fifth increase and the highest reading so far this year. While the upward trend in consumer confidence continued in July, the index is still firmly entrenched in negative territory and quite far from the 50-point threshold that separates optimistic from pessimistic sentiment.
Consumers’ more positive outlook on their economic expectations in the long-term drove the overall rise in confidence. In addition, households were also more optimistic regarding both their personal economic situations compared to one year ago and their ability to buy durable goods. While the relative stabilization of the peso following its devaluation in February helped boost consumer confidence in recent months, the ongoing conflict with the holdouts seems to have clouded consumers’ short-term outlook for both their personal economic situations and their view on the overall economy.