Household consumption of goods and services increased by 2% in December compared to November, according to data from the Argentine Chamber of Commerce (CAC). However, there was a year-on-year decline of 3.4%. The Consumption Indicator (IC) of the CAC revealed a monthly growth of 2%, reflecting the evolution of household consumption. Throughout 2024, the IC experienced a decrease of 7.4% compared to the previous year.
In December, mass consumer goods saw a decline of 1.9% compared to the previous month, but it is projected that during 2025 there will be a significant recovery. Mass consumption is expected to regain lost ground more genuinely than in previous years. On the other hand, credit in real terms showed sustained growth throughout the year, with a monthly increase of 2.7% in December and an accumulated growth of 117.8%.
When analyzing specific sectors, there is a widespread decrease in year-on-year performance for some categories. For example, clothing and footwear recorded a decline of 8.9% in December. Electricity demand was affected by a cool December, negatively impacting the sector. Other categories experienced a year-on-year contraction of 2% in December, remaining below pre-pandemic levels.
Mass consumption has seen a decline in sales throughout the year, although it managed to change the trend starting in October. The housing, rents, and utilities sector showed a year-on-year decrease of 1.6% in December. The CAC indicated that the current economic model aims to promote investment and long-term macroeconomic stability rather than spur consumption on a short-term basis.
As for durable goods, an increase in their consumption is observed thanks to access to credit, representing a change in the consumption structure of households. The CAC mentioned that artificially stimulated consumption in 2023 affected the current consumption trend. Despite an improvement in consumption in December 2024 compared to November, inflation remained stable, and the economic division showed signs of deceleration.
The transportation and vehicles chapter experienced a decrease of 1.1% in December. On the other hand, debt on credit cards and personal loans increased, allowing for the consumption of appliances and cars. The sale of durable goods has recovered compared to the beginning of the year, registering the best numbers since 2018 by the end of 2024. Despite a slight increase in vehicle registrations, gasoline usage decreased by 5% year-on-year.
In the recreation and culture sector, there was a year-on-year decline of 12.3% in December.
