Consumption in Argentina shows monthly growth in July despite annual decline

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A report from the consulting firm Scentia showed a 4.2% monthly increase in Argentine consumer spending for July, though sales remained 2.6% lower year-over-year. While the Milei administration and figures like Mercado Libre’s Marcos Galperín attributed retail declines to shifting consumer habits toward e-commerce—which grew 40% year-over-year—the Argentine Chamber of E-Commerce (CACE) noted that e-commerce accounts for only 8% of total demand. Concurrently, the Di Tella University Consumer Confidence Index fell by 1.1% in August, reaching 40.2 points amid a decline in the willingness to purchase durable goods and real estate.

Consequences

The data suggests that current growth in the e-commerce sector remains insufficient to offset broader retail stagnation. Given that consumer confidence continues to decline toward levels associated with past periods of political volatility, the administration may face continued pressure regarding the impact of its economic policies on household purchasing power.

Sources

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