Peru: Consumer confidence hits highest level in more than three years
December 31, 2010
The consumer confidence indicator (INDICCA) produced by APOYO Consultoria jumped to 58 points in December from 54 points in November. The reading represented the highest level in consumer sentiment since March 2007. With the year-end increase, consumer confidence moved further above the 50-point threshold that separates optimism from pessimism. The improvement in consumer sentiment was broad-based, reflecting consumers' better assessment about the current economic situation and future economic prospects. By socio-economic level, the consumer climate improved in four out of the five levels, but was particularly evident among the lower socio-economic levels. Moreover, low-income households expect lower price increase in the coming months, thus making households more likely to embark on home improvements and to buy major durable goods. The increase in consumer confidence also reflected a higher number of consumers that anticipate positive developments in the labour market, and are therefore looking forward to a greater likelihood of finding a job during the next 12 months.
Author: Ricardo Aceves, Senior Economist