Peru: Consumer confidence edges down in November
November 30, 2010
The consumer confidence index (INDICCA) produced by APOYO Consultoria inched down from 55 points in October to 54 points in November. Despite the drop, consumer sentiment remained above 50-points for the seventh consecutive month. A reading above the 50-point threshold indicates optimism while a reading below the 50-point threshold points to pessimism. The slight deterioration in confidence over the previous month reflected consumers' less optimistic assessment about the current economic situation. This was particularly evident among consumers in lower socio-economic groups, which observed price increases in some basic goods and influenced their expectations of a sudden rise in prices in the forthcoming months. Nevertheless, despite November's moderation, sentiment remains at very healthy levels, amid consumers' upbeat expectations about economic prospects in the year ahead. Moreover, low-income consumers are seeing positive developments in the labour market and are therefore expecting improved chances of finding a job during the next 12 months.
Author: Ricardo Aceves, Senior Economist