Argentina: Consumer sentiment improves mildly
April 22, 2014
While the recovery in consumer confidence continued in April, sentiment is still at worryingly low levels. The Universidad Torcuato di Tella (UTDT) consumer confidence index rose 1.3% over the previous month to 36.7 points. The reading marks the second consecutive increase following a nearly uninterrupted drop over the course of the previous six months. The index is still deeply entrenched in negative territory and quite far from the 50-point threshold that separates optimistic from pessimistic sentiment.
Consumers' intentions to buy durable goods drove the rise in confidence. The relative stabilization of the peso following its devaluation in February bodes well for an improvement in consumer spending and contributed to the aforementioned increase. That said, consumers were more pessimistic regarding both the situation of the economy as a whole and their personal financial situations.
LatinFocus panelists see private consumption growing 2.3% this year, which is unchanged from last month's forecast. Next year, panelists expect consumption to expand 3.4%.
Author: Armando Ciccarelli, Head of Data Solutions