Colombia's Consumer Confidence Reaches Lowest Level of 2024
October 15, 2024 (Investorideas.com Newswire) Investorideas.com (www.investorideas.com), a go-to platform for big investing ideas releases market commentary from Quasar Elizundia, expert research strategist at Pepperstone.
"Consumer confidence in Colombia reached its lowest level of 2024 in September, registering a rate of -16.0%. This deterioration of 0.7 percentage points compared to August marks the second consecutive month of decline in this indicator, reflecting growing uncertainty among Colombian households about the current and future economic situation.
This decline is primarily attributed to a 2.2% drop in the Economic Conditions Index (ECI), indicating that consumers perceive a worsening of their current financial situation. Although the Consumer Expectations Index (CEI) showed a slight increase of 0.2%, it was not enough to offset the widespread negative perception.
The decline in confidence comes amid a complex international context. Latin American currencies are facing a challenging day influenced by global factors. The Colombian peso, in particular, has shown vulnerability to the drop in oil prices, which remain under pressure. The WTI blend has fallen 7% so far this week, nearing $70 per barrel, due to signs that a significant supply disruption in the Middle East could be avoided and downward revisions in global demand forecasts by the IEA and OPEC.
At the regional level, consumer confidence declined in three of the five cities analyzed. Bucaramanga recorded the largest drop with -6.7 percentage points, followed by Medellín and Bogotá. In contrast, Cali and Barranquilla showed improvements, indicating differentiated local dynamics that may be mitigating pessimism in these areas.
By socioeconomic levels, confidence significantly decreased in the high and middle strata, with a notable drop of -11.9% in the high-income level. This figure is particularly relevant, as it suggests that even segments with greater purchasing power are adopting a more cautious stance, which could impact key sectors such as real estate and durable goods.
The willingness to buy housing decreased by 2.2 percentage points compared to August, although it showed a significant increase compared to the same month last year. This mixed behavior reflects consumers' fluctuating expectations regarding the real estate market and current credit conditions.
As for the purchase of durable goods, there was a decrease of 7.2 percentage points, standing at -30.8%. This decline suggests that households are postponing major investments, possibly anticipating a more challenging economic environment in the short term.
In summary, the Colombian economy is facing headwinds both internally and externally. The combination of declining consumer confidence, volatility in currency markets, and continued pressure on oil prices poses significant challenges.
About Investorideas.com - Big Investing Ideas
Investorideas.com is the go-to platform for big investing ideas. From breaking stock news to top-rated investing podcasts, we cover it all. Our original branded content includes podcasts such as Exploring Mining, Cleantech, Crypto Corner, Cannabis News, and the AI Eye. We also create free investor stock directories for sectors including mining, crypto, renewable energy, gaming, biotech, tech, sports and more. Public companies within the sectors we cover can use our news publishing and content creation services to help tell their story to interested investors. Paid content is always disclosed.
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact management and IR of each company directly regarding specific questions. More disclaimer info: More disclaimer and disclosure info https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp
Learn more about our news, PR and social media, podcast and ticker tag services at Investorideas.com
https://www.investorideas.com/Investors/Services.asp
Learn more about digital advertising and guest posts
https://www.investorideas.com/Advertise/
Follow us on X @investorideas @stocknewsbites
Follow us on Facebook https://www.facebook.com/Investorideas
Follow us on YouTube https://www.youtube.com/c/Investorideas
Sign up for free stock news alerts at Investorideas.com
https://www.investorideas.com/Resources/Newsletter.asp
Contact Investorideas.com
800 665 0411
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/
Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp