Chile: Business confidence falls to lowest level in nearly four years
August 9, 2013
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by Icare and the Universidad Adolfo Ibanez dropped from 53.0 points in June to 52.2 points in July, marking the lowest reading observed since August 2009. Despite the decrease, the index still remains above the 50-point threshold that separates optimism from pessimism.
The deterioration in July was broad-based; almost all categories experienced a drop compared to the previous month, with the exception of mining which saw an improvement compared to June. Businesses still feel pessimistic about the construction and industrial sectors.
Nevertheless, business sentiment remains in positive territory, which continues to bode 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.