Peru Business Confidence December 2020

Peru

Peru: Business sentiment falls into pessimistic territory in December

January 7, 2021

Business confidence dropped to 49.5 in December, down from November’s 52.8 and ending a run of seven consecutive months of improving sentiment. As such, the indicator moved below the 50-point threshold that separates pessimism from optimism among firms for the first time since September.

The moderation in firms’ expectations was broad-based in December, and likely driven by the spike in Covid-19 cases both domestically and in key international markets during the month. As such, firms’ views regarding their sector, the labor market, company investment and the company’s financial situation all deteriorated. However, despite worsening, perceptions of future demand for their products remained in pessimistic territory.

The LatinFocus Consensus Forecast panel sees fixed investment surging 16.8% in 2021, which is up 1.0 percentage points from last month’s forecast, and growing 7.3% in 2022.


Author:, Economist

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Peru Business Confidence December 20 20 0

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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