Peru: Business confidence rises amid buoyant economic growth
November 26, 2010
In October, the business confidence indicator (indice de Confianza Empresarial) published by the Central Bank, edged up from 70 points in September to 71 points, which marked the 10th consecutive month that business sentiment remained above 70 points. With the October improvement business confidence moves further above the 50-point threshold that separates optimism from pessimism. According to monetary officials, businesses remain upbeat about both the current economic situation and future business prospects. The October reading showed that agriculture, mining and hydrocarbons, as well as commerce were the sectors showing a more optimistic assessment than in the previous month. Regarding their financial situation, firms reported to be in good shape in October, with the sub-index remaining at 62 points, unchanged from September. Accordingly, a majority of firms maintained to have easy access to credit. In addition, a higher number of businesses plan to increase their staff in the coming months, with the sub-index rising from 60 points in September to 61 points in October. The improvement drove the index to the highest level, experienced only once before this year.
Author: Ricardo Aceves, Senior Economist