Chile: Business confidence ticks up in May
June 1, 2018
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by ICARE and the Universidad Adolfo Ibáñez rose from 54.4 points in April to 55.9 in May. As a result, the index moved further above the crucial 50-point threshold that separates optimistic from pessimistic sentiment among businesses, having been in positive territory since the beginning of the year.
Driving the overall result was sentiment in the mining sector, which jumped over 10 points from April to reach a three-year high of 66.5 points, amid increasing global copper prices and fading trade war fears. Sentiment also benefitted from a pro-business policy agenda set by the country’s President, Sebastián Piñera. Meanwhile, the industrial sector also remained optimistic in May, with sentiment unchanged from the previous month at 52.7 points.
Confidence in the commercial sector remained elevated in May, despite dipping just under the 60-point mark, where it had been since January. Lastly, sentiment in the construction sector fell for a second consecutive month, dropping further below the 50-point mark, following a brief return to a positive territory in March. Consequently, three out of four sectors were in positive territory in May.
Author: Almanas Stanapedis, Economist