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Peru Business Confidence May 2021

Peru: Business sentiment rises in May, remains in pessimistic territory

Business confidence rebounded to 44.8 in May, up from 39.7 in April which had marked an eight-month low. As a result, the index remained below the 50-threshold, separating pessimism from optimism among businesses.

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

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