Chile: Consumer confidence continues to improve in August
September 5, 2011
In August, the Adimark GfK consumer confidence index (IPEC, indice de Percepcion de la Economia), dropped to 42.0 points from 44.7 points in July. The reading marked the lowest level since July 2009, and remained 7.4 points short of the level registered in the same month the year before. With the August drop, consumer sentiment moves further below the 50-point threshold that separates optimism from pessimism, which does not bode well for consumption over the coming months. The deterioration was mainly driven by worsening views regarding the national outlook, which more than compensated for a more optimistic assessment of the current personal situation. In addition, respondents reported lower willingness to make major purchases.