Consumption of goods and services fell 4.1% in November

According to the Argentine Chamber of Commerce and Services (CAC), consumption of goods and services fell 4.1% year-on-year in November and the loss of dynamism in recent months continued to deepen. The Consumption Index (CI) prepared monthly by this business entity also reflected that during the past month there was a contraction of 6.9% in relation to October.” With inflation accelerating, the disappearance of the last outstanding bonds, and the lack of credit supply, November 2023 was marked by a large contraction in consumers’ purchasing power,” the report assessed. He also explained that the performance of the Argentine economy and consumption show a similar behavior, which is expressed in year-on-year variation rates that usually increase or decrease in the same line. According to the survey, a heterogeneous dynamic of year-on-year growth and decrease was observed in November with respect to the values of the apparel and footwear sector:- The clothing and footwear category showed a slight increase estimated at only 0.1% year-on-year. The stagnation would be explained by the stability in the relative price of the item.– Transport and vehicles showed an estimated growth of 0.1%, having zero impact on the year-on-year variation of the CI.
This was due to a level of car registrations that remained relatively constant (it had a decline of just 0.1% year-on-year). On the other hand, the purchase of gasoline had a moderate increase of 3.2% year-on-year.– Recreation and culture registered a growth of 2.3%, explained by a context of accelerating inflation and where consumers choose to spend on consumer products and immediate enjoyment, such as restaurants.– In terms of housing, rents and public services, it had an estimated increase of 1.2% year-on-year, This is mainly explained by a month with lower temperatures than last year.- With respect to the rest of the items, they experienced an estimated decrease of 7.4% year-on-year. in November, positioning itself at levels 12.8% below pre-pandemic levels, the CAC detailed.

Original source in Spanish