Chile: Consumer confidence turns positive for first time since May 2014
January 8, 2018
The Adimark GfK consumer confidence index (IPEC, Índice de Percepción de la Economía) increased from 47.3 in November to 53.1 in December, marking the tenth successive monthly rise and the index´s highest point in well over three years. As a result, consumer confidence rose above the 50-point threshold separating optimism from pessimism among consumers following a sustained period of depressed readings.
December’s surge was driven by greater optimism regarding the current economic situation of the country, economic expectations over the next twelve months, consumers’ personal situation and economic stability over the next five years. However, consumers became slightly less willing to make major purchases, The uptick in consumer confidence can likely be linked in part to the recent victory of Sebastian Piñera in the second round of the presidential elections in December. An improving economic panorama, with growth picking up and a fairly solid labor market, were also likely factors.
Chile Private Consumption Forecast
Panelists participating in the LatinFocus Consensus Forecast expect private consumption to grow 3.1% in 2018 and 3.1% again in 2019.
Author: Oliver Reynolds, Economist