Peru: Consumer confidence jumps on better assessments of the economy and of government action
November 3, 2017
The consumer confidence indicator published by GfK jumped from September’s 91 to 101 in October, thus moving above the crucial 100-point threshold which separates pessimism from optimism among Peruvian consumers for the first time in six months. Confidence grew in all regions of the country, and more sharply in Central Peru, where it had declined for four consecutive months, negatively influenced by local social protests.
39% of households countrywide expected that their personal economic situation will improve in the next 12 months compared to 31% in the previous month, while the proportion of households who considered there will be higher economic growth rose to 36% in October from 24% in September. The proportion of respondents that believe that the economy is currently growing jumped from 19% in September to 35%, although the relative majority of respondents believe that the economy is growing, but at a softer pace than before. Moreover, the number of respondents who perceive growth to have come to a halt fell significantly from September. Furthermore, 48% of respondents expressed discontent with the government’s actions, down strongly from September’s 63%, and almost matched the number of respondents with a positive opinion of the government’s pro-growth policies, which rose to 46% from the 32% recorded in the prior month.