Peru: Consumer confidence plummets to a record low in August
September 4, 2017
The consumer confidence indicator published by GfK plunged to an all-time low of 84 in August from July’s 98, moving well below the crucial 100-point threshold which separates pessimism from optimism among Peruvian consumers. Confidence fell more sharply in the capital Lima compared to other parts of the country.
Only 20% of households country-wide deemed that they will be able to save more in the next 12 months compared to 32% in the previous month, while the proportion of households who considered there will be higher growth and improved employment dropped to 27% in August from 32% in July. Despite the uptick in growth in Q2, a greater proportion of respondents perceived growth to be slowing. Furthermore, 68% of respondents expressed discontent with the government’s actions, believing that no effective action is being taken, compared to 54% in July and 46% in June.
Author: Nihad Ahmed, Economist