Peru: Consumer confidence edges down in March on weakening employment prospects
April 10, 2014
In March, the consumer confidence indicator published by APOYO Consultoria fell slightly to 51 points from February's 52 points. While the result indicates that consumers are still optimistic, the index has been hovering just above the 50-point threshold that separates optimism from pessimism.
The small drop in confidence over the previous month was driven primarily by a moderation in consumers' outlook regarding the job market. According to APOYO, the persistent drop in employment is dragging on private consumption. APOYO explained that, “the average consumer does not perceive important changes in conditions compared to a year ago and does not foresee significant improvements in the near future.”
The overall drop in confidence regarding the economy was shared across socioeconomic levels. However, individuals in the low-income bracket expressed worsening prospects for their families' economic situation, whereas those in the high-income bracket were more confident in this regard.
FocusEconomics Consensus Forecast panelists expect total consumption to expand 5.4% in 2014, which is up 0.1 percentage points from last month's estimate. For 2015, panelists expect total consumption to grow 5.3%.
Author: Carl Kelly, Economist