Peru: Consumer confidence moderates in August
August 29, 2014
In August, the consumer confidence indicator published by APOYO Consultoria decreased from July’s 56 points to 54 points. July’s result had marked the highest level since December of last year. Despite the moderation in August, 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 in August. The largest declines were recorded in households’ perceptions regarding their economic situation and their ability to carry out household improvements. The outlook on conditions for finding employment was also down. Household’s views regarding price stability improved over the previous month.
Optimism regarding the overall economy fell by roughly the same magnitude in all income brackets. Weaker optimism among the low-income group was likely driven by the delayed impact of the overall improvement in the labor market observed in recent months.
APOYO emphasized that the index is above the average for the first half of the year. Moreover, APOYO states that it expects improvements in the labor market in the months to come.
Author: Carl Kelly, Economist