Chile: Business confidence drops again in April
May 8, 2017
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by ICARE and the Universidad Adolfo Ibáñez fell from 45.1 points in March to 44.1 points in April, marking the second consecutive monthly decline. Following the drop, the indicator remains stuck below the 50-point threshold that separates pessimism from optimism, where it has been since April 2014.
April’s decline came on the back of worsening sentiment in the construction and industry sectors, which more than offset improved sentiment in the mining and commercial sectors. The construction sector remains deep in pessimistic territory as a result of subdued investment and strict mortgage requirements, while the industry sector dipped on the back of worsening general business conditions. The commercial sector climbed back into positive territory, with firms more positive regarding the country’s economic situation, while mining companies reported a rosier outlook, likely due in part to the resolution of the labor dispute at the Escondida mine.
Author: Oliver Reynolds, Economist