Peru: Consumer confidence holds in November after three successive declines
December 4, 2014
In November, the consumer confidence indicator published by APOYO Consultoria held at October’s 53 points. This was the first time in the last four months in which the indicator did not lose ground. Moreover, the index remains above the 50-point threshold that separates optimistic from pessimistic territory.
Three of the four sub-components that make up the indicator were down slightly in November. Households’ perceptions regarding their economic situation, their ability to carry out household improvements, and conditions for finding employment fell moderately. Household’s views regarding price stability and purchasing power improved over the previous month.
Optimism regarding the overall economy fell more among households in the high-income brackets, reflecting their growing sense of caution amid a slowing economic environment. Meanwhile, optimism levels among the low-income group were unchanged.
APOYO concluded that the tax cuts proposed by the government and the fall in prices for a few basic goods will provide some relief for household finances going forward.
Author: Carl Kelly, Economist