Colombia: Consumer confidence deteriorates in July and remains in pessimistic territory
August 17, 2016
The Fedesarrollo consumer sentiment index fell from June’s minus 11.3 points to minus 14.9 points in July. The index continues to linger far below the 0-point threshold that separates optimistic from pessimistic territory. Confidence sank into pessimistic territory in January, when it fell by over 20 points as consumers became very concerned about Colombia’s present and expected future economic conditions.
July marked the seventh consecutive month that the index has been in negative territory, though it had been recovering steadily from January until this month’s mild deterioration. The print mainly reflected a deterioration in households’ perceptions of the current economic conditions, which influenced consumers’ reluctance to purchase imported durable goods as a result of a weak peso. Meanwhile, consumers’ expectations for Colombia’s economic conditions remained fairly stable compared to the previous month.
Author: Luis Lopez Vivas, Economist