Peru: Business confidence dips in June
July 6, 2018
The business confidence indicator ticked down to 58 in June, below May’s 60. However, the indicator remained comfortably above the 50-point threshold that separates optimism from pessimism, indicating that businesses grew more optimistic in June.
Driving the decrease in business sentiment was a broad-based but slight deterioration in expectations on the both the near-future and the medium-term. Firms had less favorable expectations on demand levels, the company’s economic situation and the sector’s economic situation in the next twelve months. Moreover, they had less favorable expectations on the company’s economic situation and the sector’s economic situation in the next three months. In addition, they had worse assessments of the current business situation. On the other hand, their hiring expectations improved somewhat, and their assessments of both their current production levels and sales improved.
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%.