Chile: Business confidence ticks up in May
June 5, 2017
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by ICARE and the Universidad Adolfo Ibáñez rose from 44.1 points in April to 44.9 points in May. Despite the uptick, the indicator remains stuck below the 50-point threshold that separates pessimism from optimism, where it has been since April 2014.
May’s increase came on the back of improving sentiment in the mining, construction and industry sectors, which more than offset worsening sentiment in the commercial sector. Despite registering a slight improvement, the construction sector remains mired deep in pessimistic territory as a result of subdued investment and stricter mortgage requirements, while the industry sector rose on the back of an amelioration in general business conditions and the country’s economic situation. The mining sector reported a balmier outlook, as conditions at the Escondida mine slowly returned to normal, while the commercial sector slid due to a deterioration in sentiment regarding sales, prices, and general business conditions.
Author: Oliver Reynolds, Economist