Colombia: Consumer sentiment gains considerable ground in January, but remains in pessimistic territory

The Fedesarrollo consumer confidence index improved markedly in January, climbing to minus 2.8 points from minus 8.3 points in December. Thus, the index moved closer to the critical zero-point threshold separating optimism from pessimism among consumers in January, albeit remaining in pessimistic territory.

There was a broad-based improvement in all but one of the sub-components of the index. Consumers were notably more optimistic about their personal financial situation in the next 12 months and held less pessimistic views on the general economic conditions over the next year. Households also expressed greater willingness to purchase big-ticket items. On the other hand, consumers’ views over their current personal financial situation compared to a year ago deteriorated markedly, swinging back into pessimistic territory.

Colombia Private Consumption Forecast

LatinFocus Consensus Forecast participants expect private consumption to expand 3.5% in 2019, which is unchanged from last month’s forecast. For 2020, the panel expects private consumption to increase 3.2%.