In June, Colombian household spending totaled 80.8 trillion pesos, which in real terms represents a decrease of 4 percent compared to the same month last year. In this way, there are eight months of decrease in spending, since November.
In the accumulated of the last 12 months, that amount reaches 983.3 billion, according to the specialized consumer firm Raddar. For that company, which submits its monthly report, the result reflects the rather marked deceleration in the dynamics.
(Also read: Colombian economy continues to slow down, in May it grew only 0.65% annually)
Mauricio Moreno/EL TIEMPO
The market is only returning to its expected path
In any case, note that it remains the ‘adjustment’ effect that the market is having due to “excess spending” which occurred in 2022. “In other words, the market is only returning to its expected path,” he says.
In its analysis, the consumer study center indicates that there are four reasons for the drop in the sixth month of the year.
The first of these, according to my argument, is that “although inflation has started to slow due to a drop in food inflation, other relevant categories in the pocket of households such as rent, public services and fuel have begun to register increases”.
Regarding this issue of inflation, he comments that although it decomposed downward for the third consecutive month, it called attention to the fact that later impacts can be seen in items such as food, fuel and public services, cause of phenomenon of the child.
There could be a decrease in the number of employed or a reduction in the average salary
The second cause has to do with changes in the dollar they generated a lower inflow of income from remittances in some households in the country, which nevertheless had an impact on their budget and their purchasing plan.
Raddar mentions as a third reason that “it could present a decrease in the number of employed or a reduction in the average salary (because jobs with lower salaries are created), causing a lower disposable income in some of the families“.
Lastly, he cites a slowdown in the placement of spending due to less dynamics in some categories, beyond durable goods. For the signature, of total spending, 31.2 percent goes to food, while 23.9 percent goes to housing. They are followed by transportation and communications (15.8 percent), meals outside the home (7.3 percent) and entertainment (5.8 percent), among others.
This data for June is an indication of How is the slowdown in the economy progressing?and is added to the May results presented by Dane, corresponding to industry, tourism and commerce.
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Jaiver Nieto Álvarez / ETCE
according to National Administrative Department of Statistics (Dane)In May, retail sales fell 5.1 percent and industrial production ended 3.4 percent. For its part, hotel occupancy fell by 48.5 percent, compared to 49.9 percent in the same month last year.
As a whole, economic activity only had an increase of 0.65 percent in May, according to the Economic Monitoring Indicator (ISE) calculated by Dane himself.
Regarding trade, the fall in May, without taking into account the fuelsthe drop in real sales in the sector was 6.6 percent.
The greatest negative contributions occurred in the lines of motor vehicles and motorcyclesespecially for household use, other motor vehicles and motorcycles, hardware, glass and paint.
