Peru: Consumer confidence jumps to seven-month high in July
July 28, 2014
In July, the consumer confidence indicator published by APOYO Consultoria increased from June’s 53 points to 56 points. July’s result marked the second consecutive gain and the highest level since December of last year. Moreover, the gain pushed the index a bit further above the 50-point threshold that separates optimistic from pessimistic territory.
All of the sub-components that make up the indicator improved in July. The most noteworthy gains were recorded in households’ perceptions regarding their economic situation and employment prospects. Consumers’ outlook on price stability and their ability to carry out household improvements increased more moderately.
Optimism regarding the overall economy rose only among individuals in the low-income bracket, and is now slightly higher than that of the high-income bracket. Higher optimism among the low-income group was driven by improved perceptions of the labor market.
According to APOYO, the second consecutive increase in confidence registered in July suggests that the environment is more conducive to consumption. APOYO expects further improvements in the labor market and moderating inflation in the months to come.
Author: Carl Kelly, Economist