From the CAC they pointed out that homes tend to contract their expenses in a context of uncertainty like the current one. High rates cool the credit.
The consumption indicator (IC) of the Argentine Chamber of Commerce and Services (CAC) suffered a monthly setback of 0.1% in July. From the sector they highlighted that, both the recent volatility of the dollar and rates, and the stagnation/fall of real wages, are putting a brake on sales.
“The greatest uncertainty tends to moderate the dynamism of consumption, since Households postpone discretionary spending decisions and raise their propensity to precautionary savings. In turn, the level of salaries measured by INDEC advanced during June in line with inflation and could not gain ground in real terms, also difficult, the revitalization of consumption, “said the CAC in a report published Monday.
In interannual terms, the IC showed an advance of 1.1%. However, the referential was 2.8% below 2023, almost at the same level as in 2022, and 1.7% behind the 2018 figure, when the economy already suffered the first pumps of the exchange crisis unleashed during the Government of Mauricio Macri.
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Compared to a year ago, The consumption that rose the most were those of clothing (+16.6%), recreation (+8%) and transport (+7%). On the contrary, the division categorized as “rest” presented a 2.8%decrease.
Low wages and credit cooling limit consumption
The Chamber’s report stressed that mass consumption interrupted its slight, but sustained, recovery, affected by ” Insufficient recovery in the real income of households“
In parallel, the CAC pointed out a moderation in the consumption of durable goods, although maintaining its upward trend. “In July, the debt on cards fell again. Volatility in interest rates exhibited during June and July has discouraged and hindered the sustained credit creation process. In turn, the sale of real estate and car’s patenting showed during the sixth month of the year a minor year -on -year growth than that of the previous months, “he said.
Something similar remarked the Analytica consultancy in a recent report on the automotive sector. “The expansion of the consumption of durable goods with financing is being depleted For high interest rates and salary stagnation, putting alert lights for the continuity of economic growth, “he warned.
Source: Ambito
