Peru: Consumer confidence stabilizes in May
June 14, 2013
The consumer confidence indicator published by APOYO Consultoria remained stable in May at the 54 points observed in April. The reading marks the lowest level since November 2012 but remains above the 50-point threshold, which indicates that optimistic respondents outnumber pessimistic ones.
According to APOYO, the May survey showed that the average consumer in Metropolitan Lima remains optimistic about current economic conditions. However, APOYO notes that there is a clear worsening in sentiment compared to the levels observed at the beginning of year (January: 58 points), which mainly reflects deteriorating conditions in the labour market and a slowdown in consumer credit, which is affecting particularly households in the lower socio-economic levels.
In addition, APOYO argues that, although consumer confidence remains supportive for private consumption in the coming months, two underlying downward trends persist, which are likely to dent consumption going forward: the decrease of consumer confidence relative to the levels observed in the previous 12 months; and the relentless differences among socio-economic levels.
FocusEconomics Consensus Forecast panellists expect total consumption to expand 5.9% this year, which is unchanged from last month's estimate. For 2014, panellists expect total consumption to grow 5.7%
Author: Ricardo Aceves, Senior Economist