Peru: Consumer confidence remains stable in March
April 7, 2011
In March, the INDICCA consumer confidence index published by APOYO Consultoria remained unchanged at February's 52 points. The result represents the lowest level of consumer sentiment since August 2010. Nevertheless, the index continues to hover above the 50-point threshold that separates optimism from pessimism. The flat reading in March confirmed that consumers remain cautious regarding their assessment about the current and future economic situation, with both sub-indices improving slightly over the previous month. However, consumers' perceptions of increasing prices continued to dent sentiment, with the sub-index of current prices remaining in pessimistic territory for the third straight month. The reading suggests that consumers perceived higher prices in March, in particular those in the lowest socio-economic level. Moreover, household expectations regarding future purchasing intentions of major durable goods remained stable over the previous month, suggesting that consumers remain optimistic about their intentions to purchase durable goods.
Author: Ricardo Aceves, Senior Economist