Colombia: Consumer sentiment rises in December, but remains in negative territory

The Fedesarrollo consumer confidence index improved in December, rising to minus 8.3 points from minus 19.6 points in November. Thus, the index moved closer to the critical zero-point threshold separating optimism from pessimism among consumers in December, albeit remaining in pessimistic territory.

Consumers were more optimistic regarding their personal financial situation in the next 12 months compared to the current economic state and were also less pessimistic about the country’s economic conditions over the next year than they currently are. Moreover, households’ perceptions over the current financial situation compared to a year ago swung into optimistic territory from pessimistic terrain. On the downside, consumers’ willingness to purchase big-ticket items deteriorated from the previous month, falling further into negative territory.

Colombia Private Consumption Forecast

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