Peru: Business confidence improves but pessimism persists
June 24, 2011
In May, the business confidence indicator (indice de Confianza Empresarial) published by the Central Bank rose to 49 points after the index plummeted to 46 points in April, which had represented the lowest level since April 2009. Despite the improvement, the index remained below the 50-point threshold that separates optimism from pessimism for the second month in a row, suggesting that a majority of businesses were not optimistic about economic prospects for the next three months. According to the survey, the pessimistic reading reflected declines in firms' sales prospects for the next three months as well as businesses' less positive assessment regarding their current access to credit. As a result, a majority of firms assessed their current financial situation as less positive compared to the previous month.
Author: Ricardo Aceves, Senior Economist