Argentina: Consumer sentiment hits sixteen-year low in October

The Universidad Torcuato di Tella (UTDT) consumer confidence index fell to 32.6 points in October from 33.7 points in September, marking the worst reading since September 2002. As a result, the index moved further below the 50-point threshold that separates pessimism from optimism among consumers, where it has been uninterruptedly for nearly a year.

October’s print reflected a sharp decline in consumers’ assessments of their personal finances and a sizable drop in consumers’ assessments of the broader short-term macroeconomic environment. The drop in these components were only partially offset by a significant improvement consumers’ willingness to purchase big-ticket household items.

Argentina Private Consumption Forecast

Panelists surveyed for the LatinFocus Consensus Forecast see private consumption dropping 1.1% in 2019, which is down 1.2 percentage points from last month’s forecast. For 2020, panelists expect private consumption to increase 2.0%.