Peru | Analysis of the impact of COVID-19 on consumption with real-time data. July 23

Summary

After a significant initial acceleration, BBVA Research's consumption indicator has shown a tendency to moderate in the last week of July.

Key points

• Key points:
• The strong increase in purchases observed in the first week of July was probably due to households’ contained spending intentions. Thus, after mandatory confinement ended (June 30), purchases with cards accelerated, particularly in domestic goods.
• In July, the recovery in spending in other areas such as restaurants, fuel, and beauty and fashion has continued so far, in line with the start of Phase 3 of the resumption of economic activity (July 1).
• However, in sectors such as tourism and entertainment, spending levels are still lagging behind, because these activities continue to have low operational levels.
• In recent weeks, the relative shares of food and health expenditures continued to normalize although they still remain at high levels, particularly purchases in supermarkets and pharmacies.
• Cash withdrawals continue to recover.

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