Colombia:

The Fedesarollo consumer confidence index shot up to 8.9 points in May from 1.5 points in April, moving further above the zero-point threshold separating optimism from pessimism among consumers. May’s print marks the highest result since June 2015.

The marked upturn in consumer sentiment reflected significantly more favorable outlooks in every sub-component of the index. Consumers were less pessimistic about their current personal financial situation compared to a year ago and were also more optimistic about their financial prospects over the next year. Households also held more favorable views over the country’s future economic situation within the next year compared to the present time and their views over the country’s future economic outlook within the next twelve months swung into positive territory. Moreover, consumers held a higher propensity to purchase big-ticket items against the backdrop of subdued inflation.

LatinFocus Consensus Forecast participants expect private consumption to expand 2.5% in 2018, which is unchanged from last month’s forecast. For 2019, the panel expects private consumption to increase 3.0%.