Chile: Business confidence falls into pessimistic territory, reaches lowest level in almost five years
May 6, 2014
In April, the business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by Icare and the Universidad Adolfo IbaÃ±ez fell from 51.9 points in March to 48.9 points in April, which marked the lowest level since July 2009. Business confidence is now below the 50-point threshold that separates pessimism from optimism.
April's figure was driven by a sharp fall in business sentiment in the construction, industry and trade sectors, while mining recorded a slight improvement over the previous month.
FocusEconomics Consensus Forecast panelists expect fixed private investment to grow 1.5% in 2014, which is down 1.0 percentage points from last month's estimate. In 2015, the panel expects private investment to increase 5.6%.
Author: Dirina Mançellari, Senior Economist