Chile: Business confidence drops in Q4
January 10, 2014
In Q4 2013, the business confidence index (IEE, Indice de Expectativas Empresariales) produced by the Santiago Chamber of Commerce (Camara de Comercio de Santiago) edged down from 61.6 points in Q3 to 57.2 points. Despite the decline, business sentiment remains above the 50-point threshold that separates optimism from pessimism.
The drop was mainly the result of a deterioration in sentiment in the natural resources and commerce sectors. According to the Chamber of Commerce, firms' perceptions of the employment situation deteriorated over the previous quarter, while their sentiment regarding expected investments improved, reaching a four-month high.
LatinFocus panelists expect fixed investment to grow 8.9% this year, which is up 0.4 percentage points percentage points from last month's forecast. For 2015, the panel sees fixed investment decelerating to a 7.0% expansion.
Author: Dirina Mançellari, Senior Economist