Chile: Consumer confidence recovers in April
May 7, 2018
The Adimark GfK consumer confidence index (IPEC, Índice de Percepción de la Economía) reversed three consecutive months of declines in April, coming in at 51.2 points, up from the previous month’s 50.0 points. As a result, the index moved above the critical 50-point threshold separating optimism from pessimism among Chilean consumers. The reversal of the downward trend comes against the backdrop of moderating inflationary pressures and faster economic activity growth at the end of Q1. Consumer sentiment deteriorated throughout the first quarter after surging to a nearly four-year high in December, as Sebastian Piñera was elected the country’s president.
The increase in sentiment in April was largely broad-based, with four out of five sub-indicators showing an improvement from the previous month. Leading the recovery was consumers’ positive outlook regarding economic expectations over the next twelve months and the country’s current economic situation. On the other hand, consumers grew slightly less willing to buy big-ticket household items, marking a fourth consecutive monthly decline this year for the sub-component.
Author: Almanas Stanapedis, Economist