Peru: Consumer confidence plummets in March
The consumer confidence indicator published by GfK tumbled to 94 in March from 104 in February, which had marked the best result in over two years. The index therefore moved below the critical 100-point threshold that separates pessimism from optimism among Peruvian consumers. Last month it moved above the 100-point threshold for the first time since October 2017.
Ongoing anti-mining protests at Las Bambas copper mine, the replacement of the country’s Prime Minister in the first half of March and intensifying inflationary pressures most likely weighed on consumer sentiment. The reading reflected significant deteriorations in both consumers’ expectations over their personal financial situation in the next 12 months and their expectations on the economy over the same time horizon. Moreover, the indicator also registered a decline in the number of respondents who think it’s a good time to buy household appliances or a house.