Peru: Businesses grow more optimistic in March
April 5, 2019
The business confidence indicator rose from February’s 58.5 to 59.6 in March, and thus moved further above the 50-point threshold that separates optimism from pessimism, where it has been for almost two years.
March’s improvement came chiefly on the back of better prospects on the general economic situation, as well as on demand prospects. Firms had more favorable expectations for the next 3 and 12 months regarding the general economy and their company’s demand. Moreover, they held more positive assessments on their current sales and production levels. On the other hand, firms had less optimistic expectations on the sector’s economic prospects and their company’s economic outlook in the next 3 and 12 months. Furthermore, companies had slightly less favorable yet positive hiring intentions for the next 12 months, although they expected to hire more staff in the shorter term.
Peru Fixed Investment Forecast
Panelists expect fixed investment to contract 3.9% in 2019, which is unchanged from last month’s forecast. For 2020, panel participants see investment growing 3.6%.