Colombia: Consumer sentiment deteriorates markedly in August
Consumers turned more pessimistic in August, with the Fedesarrollo consumer confidence index falling to minus 11.8 from minus 5.1 in July—marking the lowest reading since November 2018. The index, thus, moved further below the critical zero- threshold separating pessimism and optimism among consumers, signaling a deterioration in sentiment.
August’s downturn was largely driven by households’ increased pessimism regarding the prospect of bad economic times and their assessment on the general economic conditions deteriorating within the coming year. Moreover, consumers were markedly more downbeat about their current financial situation compared to a year ago while they expressed less willingness to purchase big-ticket items.