Chile: Consumer confidence deteriorates
April 5, 2012
In March, the Adimark GfK consumer confidence index (IPEC, indice de Percepcion de la Economia) fell to 46.2 points. The reading marked a deterioration compared to February, when the index rose to 49.6 points and marked the highest level since January 2011. With the monthly drop, consumer sentiment moved further below the 50-point threshold that separates optimism from pessimism. The result was driven by deteriorations in most sub-components, especially in the households' assessment of the current economic situation. In addition, respondents to the survey reported lower willingness to make major purchases. Weakening consumer confidence does not bode well for private consumption in the near term.