Peru: Consumer confidence falls notably in February
March 7, 2018
The consumer confidence indicator published by GfK dropped further in February, coming in at 84. The result is strongly down from 91 in the prior month and marks the best reading during the Kuczynski administration. The indicator thus moved further below the crucial 100-point threshold that indicates pessimism among Peruvian consumers, where it has remained for the fourth consecutive month. Consumers grew more pessimistic as they broadly believed that economic growth is weakening, and that the government is not taking sufficient measures to revive the economy. Kuczynski’s approval rating has reached a low of 15%. Confidence dropped in all geographical areas surveyed.
Respondents largely perceived the economy to be growing, but at a softer pace than before. Moreover, the number of respondents who believed growth has stalled increased from January. Additionally, the number of households who expected that their personal economic situations would improve in the next 12 months declined. Furthermore, the number of households that expressed discontent with the government’s actions continued to grow, and now represents over two thirds of respondents. Furthermore, fewer households expected economic growth to pick up pace.
Peru Private Consumption Forecast
Panelists surveyed for this month’s LatinFocus report expect private consumption to expand 3.3% in 2018, which is unchanged from last month’s estimate. In 2019, panelists expect private consumption to grow 3.0%.