Peru: Consumer confidence improves for a third consecutive month
July 5, 2011
In June, the consumer confidence indicator (INDICCA) published by APOYO Consultoria rose to 57 points from 55 points in May, pushing the indicator further above the 50-point threshold that separates optimism from pessimism and marking the highest level since December 2010. The improvement in consumer sentiment reflected consumers' more positive assessment of the current economic situation, while a majority of respondents to the survey continue to positively asses the country's future economic prospects. Consumer confidence improved in all socioeconomic categories, but was most evident amongst those at medium and lower socioeconomic levels. Meanwhile, the more moderate price increases in June were perceived positively by consumers, with the sub-index of current prices improving notably, up 10 points in June (52 points). In addition, the sub-index of future prices continued its upward trend that began April, suggesting that consumers anticipate lower prices over the next 12 months. Furthermore, in June households' intentions regarding the future purchase of major durable goods remained in optimistic territory, suggesting positive conditions in consumer demand over the coming months.
Author: Ricardo Aceves, Senior Economist