Colombia: August consumer confidence drops to lowest level in over two years
September 11, 2013
The Fedesarrollo consumer sentiment index dropped from 25.1 points in July to 13.4 points in August, marking the lowest point since May 2011. Consumer confidence is 4.7 points below the level recorded in August of the previous year but remains above the 0-point threshold that separates optimistic from pessimistic territory.
The monthly deterioration mainly reflects a drop in consumer expectations, which fell from 25.0 points in July to 11.4 in August and marked the lowest reading since December 2009. Consumers' views on economic conditions also suffered, falling from 25.1 points in July to 16.3 in August.
LatinFocus Consensus Forecast participants expect total consumption to expand 4.1% this year, which is down 0.2 percentage points from last month's forecast. For next year, the panel expects total consumption to increase 4.5%.
Author: Carl Kelly, Economist