Peru: Consumer confidence falls to five-month low
May 14, 2013
The consumer confidence indicator published by APOYO Consultoria dropped from 56 points in March to 54 points in April, which marks the lowest level since November 2012. Despite the drop, the index remains above the 50-point threshold, which indicates that optimistic respondents outnumber pessimistic ones.
The monthly drop was mainly the result of consumers' less optimistic assessment about the current situation in the labour market, particularly consumers in the lower socio-economic levels. According to APOYO, the April survey reveals that 75% of households consider that conditions in the labour market have deteriorated compared to the last 12 months. In addition, APOYO argues that growth in sales of primary goods has notably slowed. On the other hand, consumers' perception of price increases in March was only temporal, as a majority of households now expect consumer prices to moderate in the coming months.
FocusEconomics Consensus Forecast panellists expect total consumption to expand 5.9% this year, which is unchanged from last month's estimate. For 2014, panellists expect total consumption to grow 5.7%
Author: Ricardo Aceves, Senior Economist