Peru: Consumer confidence falls to lowest level in over three years
September 10, 2013
The consumer confidence indicator published by APOYO Consultoria fell to 50 points in August (July: 54 points), which marks the lowest level since May 2010. As a result, the index now sits on the 50-point threshold that separates optimistic from pessimistic respondents.
The sharp fall in confidence reflects consumers' more negative views on the general economic situation, as well as conditions for starting home improvements and their prospects for future employment. While the deterioration in consumer confidence was felt across all socio-economic levels, it was most notable in the lower levels. According to APOYO, the abrupt change in consumer sentiment from January's peak to August's three-year low reflects a loss of momentum in the Peruvian economy.
FocusEconomics Consensus Forecast panelists expect total consumption to expand 5.9% this year, which is unchanged from last month's estimate. For 2014, panelists expect total consumption to grow 5.5%.
Author: Ricardo Aceves, Senior Economist