Peru: Business confidence declined in December
January 2, 2011
In December, the business confidence indicator (indice de Confianza Empresarial) published by the Central Bank, fell to 68 points from 70 points in November. The decline saw business sentiment falling to its lowest level for 2010. Despite the drop, business confidence remains above the 50-point threshold that separates optimism from pessimism, suggesting that firms remain optimistic about the economic expectations for the next three months. The December reading showed that firms in the transport and telecommunications sector as well as in the mining and hydrocarbons sector were more optimistic than in the previous month. Furthermore, businesses remained upbeat about their financial situation in December, suggesting that firms enjoy a healthy financial situation. In contrast, fewer firms expressed a positive assessment about their current business situation, and accordingly, fewer businesses plan to grow their workforce in the coming month.
Author: Ricardo Aceves, Senior Economist