Chile: Business confidence falls below long-term average
October 6, 2011
In the third quarter, the business confidence index (IEE, indice de Expectativas Empresariales) produced by the Camara de Comercio de Santiago (CCS) dropped to 63.3 points from 68.8 points in the previous quarter. Confidence dropped for a third consecutive quarter, to the lowest level since Q2 2009. With this quarter's drop, the index fell below the long-term average (67 points) suggesting a deceleration in economic activity in the months ahead. In spite of the fall, however, the index remains above the 50-point threshold that separates optimism from pessimism. The quarterly drop was broad-based as all sectors deteriorated notably over the previous quarter, especially mining and services. In addition, expectations about the economic outlook for the next twelve months worsened over the previous quarter. Investment, sales and employment expectations also deteriorated over the previous quarter.