Chile: Consumer confidence plunges in July
August 3, 2018
The Adimark GfK consumer confidence index (IPEC, Índice de Percepción de la Economía) plummeted from a year-to-date high of 52.7 points in June to 50.0 points in July. As a result, for the second time this year, the index sat on the critical 50-point threshold that separates optimism from pessimism among Chilean consumers.
The deterioration in consumer sentiment in July was broad-based, as all five components of the index weakened from the previous month. Both consumers’ view regarding their current personal situation and their sentiment regarding the country’s current economic situation slipped into negative territory in July. Meanwhile, sentiment regarding the country’s stability in the next five years remained firmly entrenched in pessimistic territory. Lastly, consumers’ outlook regarding the economy’s situation over the next twelve months and their willingness to buy big-ticket household items both deteriorated somewhat in July; nevertheless, both components remained well-entrenched in positive territory.
Chile Private Consumption Forecast
Panelists participating in the LatinFocus Consensus Forecast expect private consumption to grow 3.6% in 2018, which is up 0.1 percentage points from last month’s forecast, and 3.5% in 2019.
Author: Almanas Stanapedis, Economist