Argentina: Consumer sentiment plunges in February amid devaluation
February 21, 2014
Following the collapse of the peso at the end of January, consumer confidence plunged to the lowest level since the 2002 financial crisis in February. The Universidad Torcuato di Tella (UTDT) consumer confidence index recorded the largest drop on record, falling a hefty 23.4% over the previous month to 33.5 points, which marked the lowest level since September 2002. The result represents a continuation of the seemingly-unstoppable downward trend in consumer sentiment that has been recorded over the past four months.
The result mostly reflected the continued deterioration in households' outlook regarding both their personal financial situations and the general economy. Against this backdrop, consumers' intentions to buy durable goods recorded the largest drop on record.
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