Peru: Business sentiment moderates in June
July 7, 2017
The business confidence indicator came in at 53.1 points in June, below May’s 54.2 points but above the 50-point threshold that separates optimistic from pessimistic territory. Devastating floods in February and March had destroyed infrastructure and left 700,000 people homeless, dragging sentiment well below the 50-point threshold before the indicator rebounded in April.
The business sector nevertheless seems to be gradually recovering from the natural disaster. Business confidence moderated somewhat on the back of a slightly less positive views on the current economic situation and on the coming months. Firms shored up their sales and production and reported higher demand. However, demand is expected to be slightly less buoyant in the next three months than previously estimated.
Author: Christopher Mc Innes, Economist