Chile: Consumer sentiment slumps to two-year low in May
June 6, 2019
The Adimark GfK consumer confidence index declined to 40.7 points in May, from 43.2 points in April, marking the lowest reading since May 2017. Consequently, the index fell further below the critical 50-point threshold that separates pessimism from optimism among Chilean consumers.
May’s detailed estimate showed an across-the-board deterioration in all five sub-components of the index. Notably, consumers’ perception of their own personal situation and their assessment of the country’s current situation dropped the most and both fell further into negative territory. Meanwhile, their judgment of the country’s stability over the next five years ticked down and remained deeply entrenched in pessimistic territory. Lastly, consumers’ willingness to buy big-ticket household items edged down, although remained in positive territory.
Author: Nicolás J. Aguilar, Economist