Chile: Business confidence drops in Q2
July 11, 2011
In the second quarter, the business confidence index (IEE, indice de Expectativas Empresariales) produced by the Camara de Comercio de Santiago (CCS) dropped to 68.8 points from 73.4 points in the previous quarter. Confidence dropped for a second consecutive quarter suggesting a moderation in investment in the months ahead. That said, in spite of the fall, the index remains above the 50-point threshold that separates optimism from pessimism as well as the long-term average (67-points) and thus points to an ongoing expansion in business investment. The quarterly drop was broad-based, as most sectors reflected notable deteriorations, especially industry and services. In addition, investment and employment expectations deteriorated over the previous quarter as well as the economic outlook for the next twelve months. Sales represented the only exception, with survey participants expecting high copper prices to boost sales in the natural resources sector.