Chile: Business confidence improves in Q3
October 11, 2012
In the third quarter, the business confidence indicator (IEE, Indice de Expectativas Empresariales) produced by the Santiago Chamber of Commerce (Camara de Comercio de Santiago) rose to 67.4 points from 63.7 points in the second quarter. As a result, the index moved further above the 50-point threshold that separates optimism from pessimism, where it has remained since Q1 2009. The improvement was broad-based as most sectors recorded gains compared to the preceding quarter, while only the construction sector deteriorated. In its statement, the Chamber of Commerce noted rising optimism amongst businesses, which saw lower probability of a recession in next 12 months compared to the previous quarter. In addition, firm's investment expectations stabilized and employment prospects increased slightly. However, firms expect a moderation in sales across all sectors, consistent with the weakening external sector and thus lower growth outlook.