Confidence of consumers grow in Ecuador

Ecuadornews:

After it was down for two months, in February of this year the economic indicator increased. The Consumer Confidence Index grew 0.8 points in February of this year compared to January.

According to data from the Central Bank of Ecuador, that month The Consumer Confidence Index was 38.9 points. While in January it was 38.1. The growth comes after a decrease in consumer confidence was observed since December.

These results were obtained in the National Survey of Employment, Unemployment and Underemployment that was carried out in the urban area of ​​the cities of Ambato, Cuenca, Guayaquil, Machala and Quito. However, despite this growth, The Consumer Confidence Index February this year decreased by 1.4 points compared to the same month of 2018.

However, it increased by 2.7 points compared to two years ago. The Present Situation Index also increased in February by 0.6 points compared to January 2019, registering 36.7 points. The same happened with the Expectations Indicator, increased 1.4 points in February, obtaining 43.4 points.

Patricio Almeida, economic consultant, explains that these indices are based on a query to Ecuadorian households about, for example, what they bought in the month or what they plan to buy. If consumers have positive expectations, it is because the Government is on the right track, he says.

In his opinion, this growth means that Ecuadorians have a little more confidence in the economic policies applied by the National Government. Almeida attributes it, for example, to the fact that country risk continues with its downward trend and the agreement reached with the International Monetary Fund (IMF).

The consultant believes that this confidence will continue to increase, not with great optimism, but it will be positive. However, Marcelo Varela, economic analyst, believes that The Consumer Confidence Index should be down today and in the future. Varela says that for this index to grow depends on people earning more, their job stability and lower inflation so that there is confidence to consume. “But this in reality is not happening. If the level of employment falls, can it improve the economic situation of the household? The answer is no, “analyzes Varela.

The analyst explains that the index is built on the basis of some questions, for example, how they see the economic situation of the home and if they have the ability to buy. Almeida, however, clarifies that these indices are qualitative, not quantitative, that is, they are about the expectations of the people. (I)

Source:  https://www.eltelegrafo.com.ec/noticias/economia/4/confianza-consumidor-ecuador