Peru: Business confidence improves in November

The business confidence indicator rose to 55.5 in November from October’s 52.4, thus moving further above the 50-point threshold that separates optimism from pessimism.

A broad-based improvement in sub-indexes drove the increase in business sentiment. Expectations on the near-term general economic situation improved, as did expectations on demand in the next three months. Moreover, firms had more favorable assessments regarding the current business situation, as well as the development of both sales and order books compared to the previous month. On the other hand, expectations on the sector’s near-term situation deteriorated slightly.

Peru Fixed Investment Forecast

Panelists expect fixed investment to contract 3.9% in 2019, which is unchanged from last month’s forecast. For 2020, panel participants see investment growing 3.6%.