Economic Slowdown Hurts Consumer Spending In Latin America

Latin America’s economic slowdown is forcing consumers in the region to reduce their spending and look for cheaper alternatives. Results of the latest consumer survey by FT Confidential Research revealed consumer confidence is declining across the region, even in Colombia and Peru, whose economies are forecast to grow by more than 3 percent in 2015. In June 2015, 19 percent of respondents said they put most emphasis on price when buying food, compared with 16.4 percent nine months earlier. Also, price is the main concern for 41.5 percent when buying clothes and personal care products. In Brazil, where the economy is forecast to contract about 2 percent, consumers still prefer high-end brands of shampoo, face cream, cosmetics, and other personal care products; however, demand has been strong also for economy brands.