Chile: Business confidence ticks up in August
September 8, 2017
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by ICARE and the Universidad Adolfo Ibáñez rose from 42.4 points in July to 43.2 points in August. The improved reading is in line with other signs pointing towards a gradual economic strengthening thus far in Q3. However, the indicator remains below the 50-point threshold that separates pessimism from optimism, where it has been since April 2014.
Augusts’ increase came on the back of improving sentiment in the commercial, industry and mining sectors, which more than offset greater pessimism in the construction sector. The commercial sector reported a more positive outlook due to improved demand and general business conditions, while the mining sector grew more optimistic, despite the government’s controversial decision not to approve the multi-billion dollar Dominga mining project. The construction sector remains mired deep in pessimistic territory, with stricter mortgage requirements putting off potential homebuyers, while the industry sector became more optimistic thanks to improved expectations for the country’s economy.
Author: Oliver Reynolds, Economist