Chile: Business confidence inches up in Q1
April 15, 2014
In Q1, the business confidence index (IEE, Indice de Expectativas Empresariales) produced by the Santiago Chamber of Commerce (Camara de Comercio de Santiago) inched up from the 57.2 points recorded in Q4 to 58.3 points. Business sentiment is now even higher above the 50-point threshold that separates optimism from pessimism.
The increase was mainly the result of an improvement in firms' outlook on the industry and services sectors. According to the Chamber of Commerce, businesses' expectations regarding future sales and expected employment also improved over the previous quarter. Conversely, their sentiment in regard to expected investment deteriorated over the fourth quarter and reached the lowest level in nearly two years.
LatinFocus panelists expect fixed investment to grow 8.9% this year, which is up 0.4 percentage points percentage points from last month's forecast. For 2015, the panel sees fixed investment decelerating to a 7.0% expansion.
Author: Dirina Mançellari, Senior Economist