Argentina: Consumer sentiment sinks to over four-and-a-half-year low in September

The Universidad Torcuato di Tella (UTDT) consumer confidence index fell to 33.7 points in September from 36.3 points in August, marking the worst reading since February 2014. As a result, the index moved further below the 50-point threshold that distinguishes pessimism from optimism among consumers, where it has been uninterruptedly for nearly a year.

September’s print reflected a sharp decline in consumers’ willingness to purchase big-ticket household items, and a sizable drop in consumers’ assessments of their personal finances, only partially offset by an improvement in consumers’ assessments of the broader macroeconomic environment, especially the long-term perspectives on the general economic situation.

Argentina Private Consumption Forecast

Panelists surveyed for the LatinFocus Consensus Forecast see private consumption dropping 1.1% in 2018, which is down 1.8 percentage points from last month’s forecast. For 2019, panelists expect private consumption to increase 0.1%, which is down 1.2 percentage points from last month’s estimate.