Chile: Consumer confidence slips to negative territory in August
The Adimark GfK consumer confidence index (IPEC, Índice de Percepción de la Economía) fell to a 10-month low of 47.0 points in August, from 50.0 points in July. As a result, for the first time this year the index slipped below the critical 50-point threshold that separates pessimism from optimism among Chilean consumers.
The deterioration in consumer sentiment in August was once again broad-based—all five components of the index weakened markedly from the previous month. Nevertheless, consumers’ willingness to buy big-ticket household items and their outlook regarding the economic situation over the next twelve months remained well-entrenched in positive territory, despite deteriorating from July. Meanwhile, consumers’ view regarding their current personal situation and their assessment off the country’s current economic situation slipped deeper into negative territory in August. Lastly, consumers’ sentiment regarding the country’s stability over the next five years also weakened in August, significantly losing the most ground across the five components.