Peru: Business confidence continues to slide in September

The business confidence indicator fell to 55.1 in September from August’s 58.5, although nevertheless remained comfortably above the 50-point threshold that separates optimism from pessimism.

A broad-based deterioration in sub-indexes drove the decline in business sentiment. Expectations on both the near- and medium-term general economic situation declined. Moreover, firms had slightly less favorable expectations for the next 3 and 12 months regarding the company’s demand prospects and the sector’s economic situation. Expectations on the company’s situation for the next 3 months also fell. On the other hand, hiring prospects for the next 3 months improved, while medium-term hiring prospects remained stable from August.

Peru Fixed Investment Forecast

Panelists expect fixed investment to contract 4.9% in 2018, which is unchanged from last month’s forecast. For 2019, panel participants see investment growing 3.8%, also unchanged from last month.