Consumer confidence weakens after an earlier improvement

Recent dynamics

Consumer confidence remained relatively weak and volatile throughout much of 2025. The ICC generally fluctuated in the low-to-mid 40s before strengthening toward the end of the year.

The improvement became more pronounced around the turn of the year, with the index rising close to 50 and briefly moving above that level.

That improvement subsequently reversed. Confidence fell back below 50 and then declined sharply, reaching levels close to 41 during the following months.

The latest reading stands at 42.00. This represents only a modest improvement from one year earlier, despite a substantial decline from the stronger readings observed earlier in 2026.

Interpretation and economic signal

The recent decline indicates that the improvement in household sentiment was not sustained. Consumer confidence has returned toward the weaker range that characterized much of the preceding period.

This deterioration is relevant for the domestic-demand outlook because weaker confidence can make households more cautious toward discretionary purchases, durable goods, and other spending decisions that can be postponed.

The signal should nevertheless be interpreted alongside actual consumption, wage, employment, and credit data. Household confidence can deteriorate even while realized spending remains resilient, particularly when real incomes are still improving.

The year-over-year comparison also provides an important qualification. Although the index has weakened substantially from its recent peak, it remains slightly above its level one year earlier.

The current configuration therefore points to subdued consumer sentiment and weaker recent momentum rather than a clear deterioration across all household-demand indicators.

Conclusion

Chile's ICC stands near 42 after a pronounced decline from the stronger readings observed earlier in the period.

Consumer sentiment has therefore weakened materially, although the index remains slightly above its level one year earlier.

The current signal is one of subdued consumer confidence and weaker momentum, suggesting renewed household caution despite the absence of a significant annual deterioration in the index.