Peru: Consumers turn pessimistic in March
April 7, 2017
In March, the consumer confidence indicator published by APOYO Consultoría (AC) declined to 48 points (February: 50 points). The index is now below the 50-point threshold that separates optimistic from pessimistic territory. The index has not been so low since May 2011.
The deterioration in sentiment was recorded across all components. Participants stated that the prospects of finding a job worsened compared to last month and that they continue to struggle covering their expenses due to elevated prices for certain food items. The floods resulting from a coastal El Niño have destroyed agricultural land, which led to a supply crunch fueling prices for fruit and vegetables. Moreover, over 700,000 people have lost their homes and a vast amount of infrastructure, including many roads, has been destroyed.