Argentina: Consumer sentiment plummets to multi-year low in April

The Universidad Torcuato di Tella (UTDT) consumer confidence index dropped from 43.8 points in March to an almost four-year low of 40.1 points in April. The index is currently below the 50-point threshold that separates pessimistic from optimistic sentiment among consumers, where it has been almost uninterruptedly since January 2016.

April’s print reflected an across-the-board deterioration in all components of the index and in all four geographical areas surveyed. Consumers had a more pessimistic view of personal financial situation, with that subcomponent recording the largest month-on-month drop. It was closely followed by consumers’ view on the macroeconomic outlook and their willingness to purchase durable goods and big-ticket household items (appliances, cars and houses). Lastly, assessments of current and future economic conditions deteriorated as well.

Argentina Private Consumption Forecast

Panelists surveyed for the LatinFocus Consensus Forecast see private consumption rising 3.2% in 2018, which is unchanged from last month’s forecast. For 2019, panelists expect private consumption to increase 3.1%.