Peru: Business confidence stable in optimistic territory at beginning of the year
February 8, 2019
The business confidence indicator was stable at December’s 58.0 in January, and thus remained comfortably 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-term expectations offset an also broad-based small deterioration in longer-term expectations. Firms had more favorable expectations for the next 3 months regarding their company’s economic prospects, their company’s outlook on demand and hiring intentions. On the other hand, their expectations for the next 12 months on the sector’s economic prospects, and on their company’s demand outlook and hiring intentions declined. Lastly, expectations on the near-term general economic situation improved, while expectations on the medium-term general economic situation dipped.
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%.