Colombians are increasingly insecure when it comes to spending their money

In November, the Colombian Consumer Confidence Index (ICC) registered a balance of -24.8%, which represents a decrease of 5.3 percentage points (pps) compared to the previous month.

This demonstrates lower consumer confidence compared to the previous month, and ranks as the lowest balance obtained since May 2021.

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This result was mainly due to a 7.2 percentage point drop in the Consumer Expectations Index and a 2.3 percentage point drop in the Economic Conditions Index.

Consumer confidence fell in the high and medium socioeconomic levels, while holding steady at the low level.

Regarding the cities analyzed, trust decreased in all cities, except Cali. The willingness to buy a home decreased compared to the month of October, as well as the willingness to buy furniture and household appliances.

The drop in consumer confidence compared to October 2022 was due to a decrease in both the Consumer Expectations Index and the Economic Conditions Index.

The ICC brings together five components, the first three refer to household expectations within a year, while the remaining two refer to consumer perception of the current economic situation.

The Consumer Expectations Index (IEC) is constructed with the first three and the Economic Conditions Index (ICE) with the remaining two. The decrease in the CCI compared to October is explained by a decrease of 7.2 pps in the Consumer Expectations Index (-14.5%) and 2.3 pps in the Economic Conditions Index (-40.2%).

When comparing the results of the fourth quarter of 2022 with the results of the third quarter, the evaluation of consumers regarding the situation of their homes decreased 13.0 percentage points and the evaluation of the situation of their country decreased 15.1 percentage points.

On the other hand, the willingness of consumers to buy durable goods stood at -50.2% so far this quarter, a result that represents a drop of 6.1 percentage points relative to the balance registered in the third quarter of 2022.

With information from Bloomberg Línea