Colombia: Consumer confidence deteriorates in November
Latest reading: The consumer confidence index fell to minus 5.7 in November, down notably from October’s minus 3.7. Accordingly, the index remained below the 0-point threshold, indicating pessimism among consumers. Consumers became more pessimistic regarding both the country’s current and future economic situation.
Outlook: Despite November’s deterioration, sentiment improved on average at the outset of Q4, hinting at recovering private spending. Moreover, inflation continued to recede through November, and this, paired with a recent decline in the unemployment rate, will likely support sentiment and households’ propensity to consume as 2024 draws to a close and into 2025.
Panelist insight: Analysts at Scotiabank Colpatria commented:
“Most components of the CCI deteriorated in November compared to October, however they had been better than the Q3-2024 components. Compared to the last quarter there is a better willingness of buying durable goods, houses, and vehicles, which can be attributed to disinflationary process on core inflation generating a favorable dynamic in prices. However, FX depreciation could increase imports prices over durable goods, deteriorating on future CCI index.”