Peru: Businesses grow more pessimistic in April
May 8, 2019
The business confidence indicator declined from March’s 59.6 to 55.9 in April, but nevertheless remained above the 50-point threshold that separates optimism from pessimism, where it has been for two years.
April’s decline came on the back of a broad-based deterioration in the sub-components of the index. Companies had worse prospects on the general economic situation, as well as on demand prospects. Moreover, firms had less favorable expectations for the next 3 and 12 months regarding the general economy and their company’s demand. Additionally, firms had less optimistic expectations on the sector’s economic prospects in the next 3 and 12 months, and on their company’s economic outlook in the next 3 months. Furthermore, companies had less favorable yet positive hiring intentions for the next 3 and 12 months. On the other hand, firms had slightly more positive expectations on the company’s situation in the next 12 months.
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%.