Chile: Business confidence declines in June
July 5, 2017
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by ICARE and the Universidad Adolfo Ibáñez fell from 44.9 points in May to 43.2 points in June. As a result, the indicator remains stuck below the 50-point threshold that separates pessimism from optimism, where it has been since April 2014.
June’s decrease came on the back of worsening sentiment in the mining, construction and industry sectors, which more than offset improving sentiment in the commercial sector. The construction sector remains mired deep in pessimistic territory, with investors deterred by stricter mortgage requirements and an ample supply of homes on the market in the capital, while the industry sector fell on the back of a broad-based deterioration in sentiment. The mining sector reported a worsened outlook despite a gradual return to normality at the Escondida mine following a strike, while the commercial sector rose due to improved sentiment regarding sales and general business conditions.
Author: Oliver Reynolds, Economist