Peru: High unemployment dents consumer confidence in February
March 4, 2011
The consumer confidence indicator (INDICCA) published by APOYO Consultoria inched down 2 points to 52 points in February. The fall represented the second consecutive month of declining consumer sentiment, after confidence had reached a three-year high in December 2010. Despite the drop, the index continues to hover above the 50-point threshold that separates optimism from pessimism. According to the survey, the main drivers behind the drop were falling expectations regarding households' future purchasing intentions of major durable goods. In addition, the fall in consumer sentiment also reflected consumer's worsening assessment of the labour market.
Author: Ricardo Aceves, Senior Economist