Monday , July 26 2021

Economic and labor expectations are falling

Economic expectations of the population are in line.

The total economic expectations index (IGEE), which measures how the population sees the economic and labor situation in Argentina, is down two points compared to December, when there was a recovery of five points after a several-month negative trend.

The fall of January partly reverses the improvement noted in December this way IGEE can not yet get out of the 70 points around those who have been hesitating since July last year, he explained, Juliet Dejan, Commercial Director of Kantar TNS, an organization that made the report.

IGEE consists of three sub-indices: current situation, future situation and purchase of durable goods. As for December, The sub-indices of current and future situations are down (2 points in both cases) and the only remaining one is the expectations for the purchase of durable goods, which were highest in the last month of 2018 (8 points).

"Considering the moment of purchase of durable goods, which reduces the fall in the overall index and can be read as a relatively positive signal, as it maintains the eight-point growth it has experienced in December, "Dejean said.

The decline in the assessment of the current situation and future expectations they are mainly due to the perception of the economic situation as a whole (current and future), while the perception of employment has registered minor changes. "Although, the perception of the current employment situation is the indicator that deteriorates most in 2019, with this measurement being less variable and only one point falling. This does not mean that the situation does not cause disturbance in the population, because in any case it remains around the historic floor, "Dejan added.

"There are several aspects that may have influenced the decline in the perception of the current economic situation: In January, inflation was higher than expected (over December) and there was an increase in services and essential products. These events partially reduced the December recovery, " analyze Dejean.

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