Argentina: Consumer sentiment plunges in December

In December, the Universidad Torcuato di Tella (UTDT) consumer confidence index declined to 43.2 points from 51.1 points in November. The index therefore fell below the 50-point threshold that separates pessimistic from optimistic sentiment.

The index’s sharp drop was due to a broad-based decline in all three main components of the index. Willingness to purchase durable goods and real estate recorded the largest drop and was closely followed by a deterioration of the country’s macroeconomic outlook and personal economic prospects.

Panelists surveyed for the LatinFocus Consensus Forecast see private consumption rising 3.2% in 2018, which is up 0.8 percentage points from last month’s forecast. For 2019, panelists expect private consumption to increase 3.1%.