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Itaú Say Significant Consumer Sentiment Rebound Ahead Not Expected

COLOMBIA
  • On Wednesday, the consumer confidence index improved in June but remained in pessimistic territory at -14.1.
  • Itaú have noted that the sequential improvement is likely being driven by favourable COP dynamics and food disinflation. The current economic conditions sub-index increased 9.8pp from May to -25.4% (-19% one year earlier). Meanwhile, the consumer outlook sub-index improved by 8pp to -6.5% (+17.5% in June 2022). With the economy expected to slow (from 7.3% in 2022 to 1.3% in 2023), and inflation still at high levels, double-digit interest rates and elevated economic policy uncertainty, a significant consumer sentiment rebound ahead is not expected.

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