Argentina: Consumer sentiment improves in July
July 26, 2016
In July, the Universidad Torcuato di Tella (UTDT) consumer confidence index increased from the previous month’s reading of 42.7 to 45.6, which marked the highest figure in four months. Despite the increase, 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 the high rate of inflation.
In July, consumer were more optimistic regarding their personal finances today compared to a year ago. In addition, in July, the sub-index representing consumers’ willingness to make major purchases improved significantly over June’s figure. Moreover, consumers’ perceptions regarding the country’s economic situation and the perspectives for one and three years ahead increased compared to the previous month’s result.
Author: Dirina Mançellari, Senior Economist