Colombia: Consumer confidence rises to six-month high in July
Consumer confidence came in at minus 9.0 in July, up from June’s minus 12.7, marking the strongest sentiment since January. That said, the index remained entrenched below the 0-point threshold, indicating pessimism among consumers. Consumers became less pessimistic regarding both the country’s current and future economic situation.
Pessimism softened sharply in July compared to Q2, hinting at recovering private spending. That said, inflation remained more than double the Central Bank’s 3.0% target in July, and this, paired with a high unemployment rate, will likely continue to dampen sentiment and limit households’ propensity to consume in Q3.
Scotiabank Colpatria analysts commented:
“Consumer confidence has maintained a good dynamic in recent months, showing that the macroeconomic adjustment would contribute to a better perception of households regarding their economic conditions, while better prices and more favorable rates contribute to a greater willingness to buy. In the future, this dynamic could continue to contribute to easing the financial burden of households and supporting a gradual reactivation of the domestic demand.”