Tuesday , March 21 2023

Consumer confidence, even in negative territory


Deteriorating Colombian households' expectations of what might happen the following year has become the most important reason why the October Consumer Confidence Index (CCI) was again negative: -1.3%.

It is the second consecutive month when the indicator measured by the Foundation for Higher Education and Development (Fedesarrrollo) is negative: in September it was set at -0.7%. "This value represents a decrease of 0.6 percentage points (pps) as compared to the previous month and an increase of 9.3 percentage points compared to the same month of 2017", according to the publication.

to José Roberto Acosta, a member of the tax justice network and a professor at Cesa, the measure shows how serious the announcements have been to increase the percentage of family basket products taxed with VAT "is very concerned that this tax reform is already starting to generate uncertainties among citizens ".

However, the consumer's assessment of their housing situation has seen an increase over the past month, which has reversed the downward trend since the second quarter of 2018.

According to the measurements made by Fedesarrollo, Medellín and Bogotá were the only cities where ICC was negative: -1% and -5.3%, respectively (see Radiography).

In the case of Antioquia capital, there is a significant change, taking into account that the September report showed that consumer confidence was 5.7%.

Cali, Barranquilla and Bucaramanga (from major cities) showed positive trends (8.3%, 2.9% and 11.3% respectively). "As for October 2017, consumer confidence has improved in all the cities surveyed," he said.

The socio-economic indicator was negative for the environment only: -6%. In height, it was 13% and 1.6% decreasing. "Compared to the same period in 2017, consumer confidence improved at all socioeconomic levels, especially in the high-rise, where growth was 18.2 percentage points," Fedesarrollo said.

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