Peru: Consumer confidence falls in July
August 2, 2011
In July, the consumer confidence indicator (INDICCA) published by APOYO Consultoria fell to 54 points from 57 points in June, reversing three consecutive months of improving sentiment. As a result of the monthly drop, the index moved closer to the 50-point threshold that separates optimism from pessimism. The fall in the overall consumer confidence indicator reflected a majority of consumers displaying a more negative assessment about the current economic situation and consumers were less upbeat about future economic prospects. Consumer confidence deteriorated in all socioeconomic categories, but was most evident amongst those in the medium and upper socioeconomic levels. Moreover, the price increases in July were noticed by consumers, with the sub-indicator of current prices deteriorating notably in July, down 5 points to 46 points. In addition, the sub-index of future prices reversed the upward trend that began in April and fell by 5 points in July (65 points), suggesting that consumers anticipate higher prices over the next 12 months. Furthermore, in July households' intentions regarding the future purchase of major durable goods deteriorated over the previous month, suggesting less positive conditions in consumer demand over the coming months.
Author: Ricardo Aceves, Senior Economist