Chile: Consumer confidence rises in June
July 6, 2018
The Adimark GfK consumer confidence index (IPEC, Índice de Percepción de la Economía) came in at 52.7 points in June, up from 51.2 in May and marking the strongest reading so far this year. As a result, the index moved further above the critical 50-point threshold separating optimism from pessimism among Chilean consumers. Sustained consumer optimism came against the backdrop of solid GDP growth in the first quarter and robust economic activity readings in April and May.
The improvement in consumer sentiment in June was driven by consumers’ more positive view of their current personal situation, with the sub-indicator surging to the 50-point mark in June, up considerably from the previous month’s reading. Sentiment regarding the country’s current economic situation and the country’s stability in the next five years also improved significantly in June.
Lastly, consumers’ outlook regarding economic expectations over the next twelve months and consumers’ willingness to buy big-ticket household items both remained broadly stable in June, and well-entrenched in the positive territory. As a result, four out of the five components of the index settled in positive territory in June.
Chile Private Consumption Forecast
Panelists participating in the LatinFocus Consensus Forecast expect private consumption to grow 3.5% in 2018, which is up 0.2 percentage points from last month’s forecast, and 3.5% again in 2019.
Author: Almanas Stanapedis, Economist