Although consumption shows tentative signs of recovery, Argentine households continue to adjust their spending. This is indicated by an iReport from the specialized consulting firm Moiguerwhich indicates that despite a “positive expectation” about the economic future, the financial situation of families still does not correspond to this forecast.
According to the survey, consumption remains restrictive and the work scenario shows signs of greater complexity, factors that limit the purchasing capacity of most households. Restriction of consumption generally predominates: after the parliamentary elections in October 62% of people had to cut expenses from their daily budget in the last month; 50% said they would run out of money before the end of the month; and 57% of households reported being in debt.
Comparing daily spending between this year and last year shows a sharp decline in non-essential items. The use of taxis and transport as well as leisure trips was reduced by 70%; 69% adjusted consumption of alcoholic beverages, sweets and chocolate; and 67% reduced social encounters.
In the opposite direction, Some expenses are showing an upward trend. The report highlights increased use of public transportation (67%) and personal vehicles (51%), as well as an increase in spending on exercise (46%), streaming services (46%) and purchasing top grocery brands (36%)..
When analyzing the When it comes to the development of consumption compared to the previous year, the study shows a heterogeneous scenario: 7% of respondents assure that their consumption will grow in 2025 and 29% say that it will remain stable. In contrast, 23% say they have adjusted their consumption in the last few months; 18% believe consumption remains low even after last year’s cuts; and 22% confirm that the decline has recently worsened following a previous adjustment.
Despite this panorama, the study shows a more optimistic view of the future: 53% of respondents expect their purchasing capacity to increase next year.
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