Costa Rica consumer confidence near lowest level since 2009

May 13^th, 2015 (InsideCostaRica.com) Pessimism amongst consumers has continued to increase for the last nine months, with consumer confidence reaching a near-record low in April, according to the Spanish-language financial newspaper, El Financiero (EF).

The Consumer Confidence Index (ICC), produced by pollster Unimer for EF, closed last month at 3.8 points, the second-lowest measurement ever taken since EF began producing the report in 2009.  The lowest level ever recorded was 3.7 points in November 2013.

The index uses a scale of 1 to 10.  Any measurement higher than 5 reflects positive consumer sentiment, while readings below 5 reflect pessimism.

Respondents cited a difficult environment for doing business, steady unemployment, and unfavorable expectations regarding their personal and family finances.

Forty-three percent believe the country’s economic situation is worse than a year ago, while a staggering 67% believe they are at risk of losing their jobs or not finding work.  Unemployment reached 10% at the end of 2014.

A slowing economy is also weighing on consumer sentiment.  Economic activity recorded its tenth consecutive month of slowdown in February, the latest figure available.  Meanwhile, 77% of respondents believe that the business environment in the country is worse than a year ago.

On a slightly positive note, falling interest rates, low inflation and a stable exchange right have resulted in a slight uptick in consumers who believe it may be a good time to purchase a car or home, compared to the previous measurement.   Still, 55% believe it is still a bad time to purchase a home, and only 22% believe it is a good time to purchase a vehicle.

Unimer, on behalf of EF, surveyed 400 households by telephone between March 25^th and April 25^th.