Peru: Consumer confidence improves in April
May 4, 2011
The consumer confidence indicator (INDICCA) published by APOYO Consultoria inched up by one point to 53 points in April. As a result of the monthly reading, the index pushed higher above the 50-point threshold that separates optimism from pessimism. The improvement in consumer sentiment mainly reflected respondents' more optimistic assessment about the future economic situation, with the sub-index of economic prospects improving over the previous month. Consumers remained cautious regarding their assessment of the current economic situation, with the sub-index remaining unchanged over the previous month. Moreover, the rapid rise in international prices for food and energy continued to fuel consumers' fears of increasing prices, with the sub-index of current prices deteriorating over the previous month and remaining in pessimistic territory for a fourth consecutive month. The reading suggests that consumers perceived higher prices in April. Furthermore, households' intentions regarding the future purchase of major durable goods were stable over the previous month, suggesting positive conditions in consumer demand in the months ahead.
Author: Ricardo Aceves, Senior Economist