Peru: Business confidence moves further into optimistic territory in February
March 8, 2019
The business confidence indicator ticked from January’s 58.0 to 59.0 in February, and thus moved further above the 50-point threshold that separates optimism from pessimism, where it has been for almost two years.
A broad-based albeit limited improvement in short- and longer-term expectations was behind the positive development. Firms had more favorable expectations for the next 3 months regarding the general economy’s outlook, their company’s and sector’s economic prospects, their company’s economic situation and outlook on demand, and their hiring intentions. Moreover, their expectations for the next 12 months on the general economic situation, and the sector’s economic prospects also grew more optimistic. On the other hand, companies had slightly less favorable yet positive hiring intentions for the next 12 months.
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%.