Peru Business Confidence


Business confidence drops to three-month low

In May, the business confidence indicator (Indice de Confianza Empresarial) published by the Central Bank fell to 60 points from 65 points, as less businesses responding to the survey were optimistic about future economic prospects for the next three months. Moreover, the May outturn marked the first drop in the index after four consecutive gains. That said, despite the fall, the index remains above the 50-point threshold that separates optimism from pessimism. According to the Central Bank, the monthly drop reflected firms'less positive sales expectations for the next three months. In addition, the sub-indicator of demand expectations dropped over the previous month, falling back to the levels observed in January. Moreover, the May survey also showed that businesses were less optimistic about their own financial situation and their access to credit.

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Peru Business Confidence Chart

Peru Business Confidence May 2012

Note: Business Confidence Index (Indice de Confianza Empresarial).Values above 50 indicate an optimistic assesment in business climate while values below 50 indicate a pessimistic assesment.
Source: Peru Central Bank (BCRP).

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