Peru: Consumer confidence declines to two-year low
September 13, 2012
In August, the consumer confidence indicator (INDICCA) published by APOYO Consultoria fell to 51 points from 55 points in July. The decline marked the sharpest monthly drop since January 2011 and drove the index to its lowest level since August 2010. As a result, the index now lingers only slightly above the 50-point threshold, which indicates that optimistic consumers outnumber pessimistic respondents. The monthly drop was caused by consumers' more negative assessment about the current economic conditions as well as a less positive outlook on future economic prospects. By socio-economic levels, the deterioration was mainly seen in low-income households. In addition, respondents to the August survey revealed a less rosy perception of current labour market conditions, which in turn led to a lower willingness to embark in purchases of major goods in the current economic environment.
Author: Ricardo Aceves, Senior Economist