Peru Business Confidence June 2021


Peru: Business sentiment falls further into pessimistic territory in June

July 8, 2021

Business confidence regressed to 39.5 in June, down from 44.8 in May and marking a ten-month low. As a result, the index moved further below the 50-threshold, separating pessimism from optimism among businesses.

The deterioration in firms’ expectations was broad-based in June, and was likely weighed on by uncertainty surrounding early June’s presidential run-off election between two divisive candidates. As such, firms’ views regarding their sector, the labor market, future demand for their products, and investment all fell, although the subindex for the company’s financial situation rose slightly this month.

The LatinFocus Consensus Forecast panel sees fixed investment surging 16.7% in 2021, which is up 1.5 percentage points from last month’s forecast, and growing 3.9% in 2022.

Author:, Economist

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Peru Business Confidence Chart

Peru Business Confidence June 2021

Note: Business Confidence Index (Ïndice de Confianza Empresarial). Values above 50 indicate an optimistic assessment of the business climate while values below 50 indicate a pessimistic assessment.
Source: Peru Central Bank (BCRP).

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