Chile: Business confidence slips in October
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by ICARE and the Universidad Adolfo Ibáñez fell from 54.8 points in September to 53.6 points in October, although remained above the crucial 50-point threshold that separates optimism from pessimism among businesses. In October, two out of the four sectors surveyed were in positive territory, one less than in the previous month.
The deterioration in October was led by the industrial sector, where sentiment slipped into negative territory for the second time this year amid lower production expectations. Furthermore, confidence in the mining sector fell slightly in October, although remained well entrenched in positive territory overall, as worsening expectations of the country’s economic situation, production levels and prices outweighed much improved sentiment regarding current production levels. Lastly, confidence deteriorated within the commercial sector in October against a backdrop of deteriorating expectations of prices and costs.
On a more positive note, construction sentiment rose to a six-month high in October on the back of stronger demand dynamics. Moreover, although the index came in above its historical average, it remained below the 50-point mark where it has been since March.