Chile: Consumer confidence stable in May
June 7, 2018
The Adimark GfK consumer confidence index (IPEC, Índice de Percepción de la Economía) came in at 51.2 points in May, unchanged from the previous month’s reading. As a result, the index remained above the critical 50-point threshold separating optimism from pessimism among Chilean consumers. Sustained consumer optimism comes in light of a stronger-than-anticipated GDP growth in the first quarter, robust economic activity readings in April and persistently low inflationary pressures at the beginning of the second quarter.
Positive consumer sentiment in May came on the back of consumers’ positive outlook regarding economic expectations over the next twelve months and the country’s current economic situation. Furthermore, consumers grew more willing to buy big-ticket household items in May compared to April. On the other hand, sentiment regarding the country’s stability in the next five years showed a strong deterioration from the previous month in May. Meanwhile, the current personal situation sub-indicator also stayed below the 50-point mark, despite improving month-on-month. As a result, three out of the five components settled in positive territory in May.
Chile Private Consumption Forecast
Panelists participating in the LatinFocus Consensus Forecast expect private consumption to grow 3.3% in 2018, which is unchanged from last month’s forecast, and 3.5% in 2019.
Author: Almanas Stanapedis, Economist