According to the Universidad Torcuato Di Tella’s monthly survey, confidence in the government slipped at the margin by 1.9% mom to 52.1% in January, after remaining stable in December. As a result, confidence in the government remains high, only 8.9% below its peak when the government took office in December 2023.
Most components fell in January: The “capacity to solve problems in the country” fell by 2.6% MoM, the "honesty of public officials" contracted by 4.3% MoM, the "Efficiency in the management of public spending" decreased by 0.2% MoM and the "concern for the general interest" contracted by 4.6% MoM. On the other hand, the "General evaluation of the government" rose by 2.5% MoM.
Positive economic outlook. According to the survey, 81.0% of those surveyed expect the economy to improve over the next 12 months (83.6% in the previous survey). On the other hand, 46.0% see no change (43.6% before) and 7.4% expect the economic situation to worsen (10.4% last month).
Our take: Confidence in Milei's government remains high, despite the slight dip in January. Maintaining a high approval rating is key for President Milei and his deregulation agenda, given his minority position in Congress, especially with mid-term elections looming in October. February data should be released by the end of next month.