Peru: Consumer confidence rises in June
July 9, 2013
The consumer confidence index published by APOYO Consultoria rose to 56 points in June from 54 points in May. As a result, the index remains above the 50-point threshold, which indicates that optimistic respondents outnumber pessimistic ones.
According to APOYO, the improvement observed in June mainly reflects consumers' more positive assessment about the current economic situation as well as future economic prospects, particularly in the lower socio-economic levels. Meanwhile, consumer sentiment in the higher socio-economic level remained unchanged over the previous month, reflecting how households' more positive assessment about future job prospects was offset by a less positive view of current economic conditions.
According to APOYO, at the current level, consumer confidence remains supportive for private consumption. However, two underlying risks that are likely to dent consumption going forward persist: the moderation in growth in private investment and a deterioration in the job market.
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