Argentina | Real-time consumption monitoring (Aug 18, 2021)

August began with a YoY recovery of consumption in real terms, although its level is lower than before the pandemic. The end of the winter vacations significantly contracted tourism and leisure spending, while the rest of the categories remain weak.

Key points

• Key points:
• In the first days of August, consumption measured in real terms reversed the YoY decline of late July, remaining 7 pp below the pre-pandemic level.
• As the normalization of restrictions on mobility and presentiality progresses, spending on services continues to evolve better than spending on goods, but still has some way to go to reach the level prior to the COVID-19 irruption.
• At the end of the winter recess, the categories related to Tourism and Leisure are once again contracting, reflecting the reduced capacity of demand to sustain postponed consumption. The stagnation of the other items validates the weakness of the economy in general.
• Construction spending improved for the third consecutive month and entered positive territory, showing an incipient recovery of the sector and marking a parallelism with the evolution of the FX premium.
• Following our real time consumption indicator, the industry would also achieve a slight improvement that would allow it to continue progressing.

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