Argentina: Consumer sentiment improves significantly in April
April 26, 2017
In April, the Universidad Torcuato di Tella (UTDT) consumer confidence index rose from 41.0 in March to an over one-year high of 46.2 in April. As a result, the index moved closer to the 50-point threshold that separates pessimistic from optimistic sentiment. Consumer confidence, particularly among lower-income households, has been negatively affected by the Macri administration’s reforms, which, in order to fix the numerous imbalances stemming from the previous administration’s economic policies and give the country a more stable policy framework, have resulted in job cuts and a high rate of inflation.
In April, consumers were significantly more optimistic about their current financial situation compared to one month ago. Their outlook regarding their future financial situation also improved substantially, building on the slight improvement registered in March. Households’ assessment of both the country’s short- and long-term macroeconomic prospects improved strongly, with the former improving at the fastest rate since 2012. Lastly, consumers’ willingness to make major purchases saw a large rise in April following March’s decline.