Colombia: Consumer confidence increases in June
Consumer confidence came in at minus 12.7 in June, up from May’s minus 14.1; however, the index remained entrenched below the 0-point threshold, pointing to still-negative sentiment among consumers. Consumers became less pessimistic regarding the country’s current economic situation, while becoming more pessimistic regarding its future economic situation.
Pessimism deepened on average in Q2 compared to Q1, hinting at muted private spending. Moreover, inflation remained more than double the Central Bank’s 3.0% target in June, and this, paired with a high unemployment rate, will have likely further dampened sentiment and households’ propensity to consume in the quarter.
Scotiabank Colpatria analysts commented:
“Consumer confidence does not reflect a clear trend and has remained volatile throughout the year; however, it appears to be stabilizing, showing a better balance than the previous year. […] A better willingness to buy durable goods on the part of consumers could mean a moderate recovery in commercial activity in the second part of the year.”