Peru Business Confidence March 2017

Peru

Peru: Business sentiment plunges in March

April 6, 2017

The business confidence indicator came in at 44.0 points in March, according to the Central Bank. The result was a drastic fall from the 54.6 points recorded in February and marked the lowest result in 14 months. After the devastating floods over the past weeks that have destroyed infrastructure and left 700,000 people homeless, the business confidence indicator is now clearly below the 50-point threshold that separates optimistic from pessimistic territory.

All components of the indicator deteriorated in March. Businesses slashed their production as sales and new orders tumbled. Looking forward, businesses are pessimistic about the economy in the next three months and in the next year, showing limited confidence that the government’s announced infrastructure plan will ease the economic hardships.

Panelists surveyed for this month’s LatinFocus report expect fixed investment to increase 2.7% in 2017, which is unchanged from last month’s forecast. For 2018, panel participants see investment growing 4.3%.


Author: Marlène Rump, Senior Data Analyst

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Peru Business Confidence March 2017

Note: Business Confidence Index (Indice 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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