Confidence in the government rose to 53.3% in November, up from 48.5% in October. According to the Universidad Torcuato Di Tella’s monthly survey, confidence in the government increased by 9.9% MoM in November, marking its second consecutive gain. As a result, confidence in the government is only 6.8% below its peak when the government took office in December.
All components rose at the margin: In particular, "General evaluation of the government" rose by 20.0% MoM, followed by "Efficiency in the management of public spending" which rose by 12.1% MoM and the "concern for the general interest" which expanded by 9.3% MoM. The component "honesty of public officials" increased by 7.9% MoM, while the “capacity to solve problems in the country” grew 3.2% MoM. Thus, we noted that after one year in office, the government achieved higher support compared to the previous four administrations.
Positive economic outlook. According to the survey, 85.2% of those surveyed expect the economy to improve over the next 12 months, the highest level since Milei took office. On the other hand, 45.8% see no change (51.6% in the previous month) and 9.2% expect the economic situation to worsen (10.2% last month).
Our take: Confidence in Milei's administration has remained strong, and even improved at the margin, despite the significant macro adjustment. Activity has begun to snap back sequentially as inflation has continued to decelerate, amid a significant narrowing of the spread between the official and parallel exchange rate markets and strict control of fiscal spending. December data should be released by the end of the year.