We characterize consumer confidence cycle across LatAm using Markov-switching models. Our findings show that a core group of countries shares a statistical common ground for both confidence’s boom and bust cycle synchronisation. Notably, Argentina and Chile tend to lead consumer mood shifts, playing a leading role in propagating consumer confidence shocks throughout LatAm.

We characterize regional business cycles for Spain using monthly Social Security affiliations. Based on a set of Markov-switching models, we find substantial synchronization of regional business cycles, which has increased since the Great Recession. We do however evidence a regional leading and lagging performance that repeats itself across the different recessions.