Chile: Business confidence drops in May
June 10, 2011
In May, the business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by Icare and Universidad Adolfo Ibanez dropped to 60.1 points from 62.3 points in April. In spite of the fall, the index remains above the 50-point threshold that separates optimism from pessimism, suggesting a somewhat positive outlook for investment. The weaker May reading reflected a broad-based deterioration, as all sub indexes decreased over the previous month. That said, the most notable deterioration was in the construction sector, which dipped from 64.4 points in April to 59.0 points. Despite the May drop, all sub-categories remain above the 50-point threshold, thus implying an optimistic outlook in all main industrial sectors.