Colombia: Consumer sentiment improves sharply but remains firmly entrenched in pessimistic territory
March 15, 2017
The Fedesarrollo consumer sentiment index increased from January’s minus 30.2 points—an all-time low— to minus 24.3 points in February. Despite the sharp improvement, the index remained below the 0-point threshold that separates optimistic from pessimistic territory. Confidence first sank into pessimistic territory in January 2016, when it fell by over 20 points as consumers became very concerned about Colombia’s current and expected future economic conditions.
February marked the fourteenth consecutive month that the index has been in negative territory. February’s stronger print mainly reflected a steep improvement in households’ expectations of future economic conditions. Household’s perceptions of current economic conditions also improved compared to January, albeit at a more moderate rate.
Author: Luis Lopez Vivas, Economist