Argentina’s consumer confidence indicator rose to 45.02 in November2024, up from 42.42 in October, which was also the highest level in a year.
This continued improvement reflects cautious optimism among consumers, driven by improvements in key areas such as personal financial assessments, macroeconomic outlook and durable goods purchase intentions.
These factors suggest a possible recovery in domestic consumption, which would particularly benefit the retail and durable goods sectors.
However, when compared to November of the previous year, the index still shows a decline of 5.24%, pointing to persistent economic difficulties amid President Milei’s reforms.
Although the recent rebound in consumer confidence and Fitch’s credit rating upgrade to “CCC” should help improve the outlook for Argentine financial markets, the country’s structural weaknesses continue to weigh on investor sentiment. If the positive trend persists, Argentina’s equity and debt markets could post interesting gains, encouraging optimism in Latin American markets as a whole.
However, political instability remains a major concern for investors looking to the mid-term.
