Peru: Business confidence falls to 20 month low in May
June 14, 2013
The Central Bank's business confidence indicator (Indice de Confianza Empresarial) included in its survey of macroeconomic expectations fell from 60 points in April to 54 points in May, which represents the lowest level in 20 months. As a result, the index is now slightly above the 50-point threshold that separates optimism from pessimism.
The monthly decline was broad-based, but was particularly sharp in businesses' sales prospects, as well as in firms' overall demand expectations for the next three months. In addition, respondents to the May survey maintained a positive assessment regarding their financial situation as well as their access to credit, but their view was less optimistic than in the previous month.
FocusEconomics Consensus Forecast panellists expect fixed investment will grow 11.2% this year, which is unchanged from last month's forecast. For 2014, participants see investment growing 10.4%.
Author: Ricardo Aceves, Senior Economist