Surge in Household Spending: Peru's Economic Boom in May 2025!

Perú - In a notable shift, household consumption in Peru has witnessed a substantial rise, particularly highlighted by spending trends from May and earlier months in 2025. With the market showing positive signs, the economic landscape seems promising for many families, sustaining their purchasing power.

According to Gestión, formal employment opportunities in the private sector have seen significant growth, boasting a 9.7% increase in March, which is the best outcome in over a year. This has enabled households to experience an improved cash flow, illustrated by the 14.3% rise in the formal salary mass and an inflation rate of just 1.7% in May. Such conditions help maintain family budgets and enhance overall spending.

Spending Patterns and Categories

Spending with credit and debit cards accelerated impressively across several categories in May. Notably, the entertainment sector surged by 78.3%, with cinema and theater enjoying a fivefold increase. However, home-related spending presents a mixed picture; while maintenance-related expenses showed a healthy 13.3% growth, spending on furniture and decor suffered an 8.9% decline.

• Growth Categories:
• Entertainment: 78.3%
• Health: 13.5%
• Home Maintenance: 13.3%
• Decline Categories:
• Furniture and Decor: -8.9%

The increase in private consumption, measured at 3.8% in the first quarter of 2025, marks the sixth consecutive quarter of growth. This trend is expected to continue, with the Big Data Index for Private Consumption soaring 13.7% in April and May, surpassing previous quarters. The overall digestible news is that people are spending, with the potential for sustained growth in the second quarter of this year.

Shifting Trends and Future Expectations

The landscape of consumer spending is also evolving, as households lean toward digital solutions. Reports from AmCham indicated a noticeable shift towards digital transactions. In January 2025, for instance, 69% of purchases were made via card payments, reflecting a more than ten-point increase compared to the previous year. The rise in online shopping is particularly encouraging, achieving a remarkable 70% penetration.

While spending in key areas such as food, health, and education continued its momentum in earlier months—with the food sector growing by 12.5%—the broader implications remain vital. The ongoing discussions in Congress around a potential eighth withdrawal from pension funds might stir some short-term consumption outcomes.

As we observe these changes, it’s essential to keep an eye on overall economic indicators and how family finances adapt to these evolving patterns. With households making wise spending choices, driven by favorable employment trends and manageable inflation, it seems there’s something to be said for a resilient marketplace ready to embrace the challenges ahead.