Chile: Business confidence falls to lowest level in almost four years
July 1, 2013
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by Icare and the Universidad Adolfo Ibanez dropped from 57.3 points in May to 53.0 points in June, marking the lowest reading observed since September 2009. Despite the monthly fall, the index still remains above the 50-point threshold that separates optimism from pessimism.
The deterioration in June was broad-based, as all categories experienced a drop compared to the previous month. Most notably, the construction and industrial sectors have now fallen into pessimistic territory.
Positive business sentiment bodes well for investment growth in the near term. Consensus Forecast participants expect fixed private investment to grow 7.7% in 2013 before moderating to 6.5% in 2014.