EconomyFinancialHousehold spending grew 11.4% in April 2021

Household spending grew 11.4% in April 2021

According to Raddar, despite the increase, it is still a historically negative month compared to recent years, as the new isolations curbed spending.

Colombian household spending in April 2021 was $ 62.1 trillion, registering a growth of 13.6% compared to the same month last year ( in real terms it was 11.4% ). This is indicated in the most recent report by the firm Raddar, specialized in consumption data in Colombia.

According to the report, despite the increase, April was a historically negative month compared to the last five years. In addition, the increase in infections and isolations caused a significant brake on spending.

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“Although April 2020 was the largest drop in household spending within the isolates, some categories decreased 12 months later, in response to the large growth they had; however, in the large baskets of spending, durability and channels, by April 2021 none reached the levels of January 2020, ”says the report.

Within the spending basket that Raddar studies, which includes goods and services, none of the country’s main cities has recovered its level of spending , but the population continues to grow in all of them.

Along these lines, the report indicates that there is an increasing population with low incomes and more young people making purchases compared to the last years. “People continue to buy by value and not by price, and they are little given to looking for new categories of consumption,” says the firm.

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Of the total respondents, 33.3% indicate that their last purchase was out of habit , followed by necessity (26.3%) and taste (16.5%). 63.4% claim to have made their last purchase at the local store.

On the other hand, the credit placement in households by the financial sector in credit cards, consumer and mortgages grew 126% in April 2021 compared to the same month of 2020. Likewise, the value of credit card transactions grew 112%.

The firm indicates that this is linked to positive dynamics in the market for the sale of new and used housing, as reported by Camacol, and an increase in the sale of vehicles.

Regarding the marches that began at the end of April, the report indicates that although they did not have a significant impact on household spending, they did so on purchasing channels, “due to the closures of trade and the loss of jobs in those days ” .

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