Chile: Consumer sentiment slumps to all-time low in November

The Adimark GfK consumer confidence index fell to 28.3 points in November, a record low, from 36.7 points in October. Thus, the index fell further below the critical 50-point threshold that separates pessimism from optimism among Chilean consumers.

November’s bleak result reflected the negative effects that country-wide protests are having on consumers. Four out of five sub-components of the index sank deeper into negative territory, with consumers’ willingness to buy big-ticket household items taking the biggest blow. Conversely, households’ perception of the stability of the country in the next five years rose in November, yet remained entrenched in pessimistic territory.

Panelists participating in the LatinFocus Consensus Forecast expect private consumption to grow 2.1% in 2020, which is down 0.9 percentage points from last month’s forecast. For 2021, the panel expects private consumption to grow 2.7%.