Chile: Consumer confidence edges up in October
The Adimark GfK consumer confidence index (IPEC, Índice de Percepción de la Economía) rose to 46.7 points in October, from 46.1 points in September, marking the first improvement after three consecutive months of deteriorating sentiment. However, the index remained well-below the critical 50-point threshold that separates pessimism from optimism among Chilean consumers, where it has been since August.
The less pessimistic reading at the beginning of the fourth quarter reflected gains in three out of the five components of the index compared to September, which more than offset the deterioration in the remaining two components. Consumers’ willingness to buy big-ticket household items improved markedly from September and was well-entrenched in positive territory. In addition, consumers’ assessment of the country’s current economic situation continued to improve in the surveyed month and fell just short of the 50-point threshold. Lastly, their opinion of the country’s stability over the next five years recovered slightly from a significant slip in September but remained deeply entrenched in negative territory.
On the other hand, consumers’ views regarding the economic situation over the next twelve months deteriorated in October, although it remained above the 50-point threshold. Consumer’s assessment of their current personal situation, however, remained in negative territory in October, deteriorating marginally from September.