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FocusEconomics: Peru's consumer confidence rebounds in April 2018

08:00 | Lima, May. 22.

Peruvian consumer confidence saw a sharp rebound last April, thus ending five consecutive months of decline, the latest FocusEconomics' LatinFocus Consensus Forecast report affirmed.

According to a GfK survey, consumer confidence index rose from 80 points (March) to 98 points (April).

According to analysts, said result reflects consumers trust the new administration of President Martin Vizcarra, who took office on March 23.

"The indicator moved much closer to the crucial 100-point threshold that separates optimism from pessimism among Peruvian consumers," the report read.

Similarly, short-term economic expectations among consumers scaled up in the analyzed month.

In this regard, most survey participants agreed Peruvian economy is growing but at a slower pace. Yet, "the number of respondents who believed growth has stalled decreased considerably from March."

Likewise, more households expected economic growth to pick up the pace. 

Furthermore, two-thirds of respondents believed that regaining growth would be possible with Mr. Vizcarra as President.

FocusEconomics' panelists projected private consumption will grow 3.2% and 3.6% in 2018 and 2019, respectively.

Business confidence

On the other hand, the business confidence indicator increased from 54 points (March) to 59 points (April).

The survey also revealed enterprises had more favorable expectations on demand levels and companies' economic situation in the next three months. 

"That said, they had broadly stable expectations about longer-term prospects, as their expectations on their specific sector of activity and their own company in the twelve months remained virtually unchanged," FocusEconomics noted.  

Lastly, panelists estimated fixed investment will expand 4.5% in 2018, unchanged from last month's projection. Plus, they forecast investment will rise 4.8% next year.

(END) NDP/JAA/MVB

Published: 5/22/2018