Peru: Business confidence inches down but remains at healthy level
October 27, 2010
In September, the business confidence index (indice de Confianza Empresarial) published by the Central Bank slipped from 71 points in August to 70 points. The level of business confidence stayed above 70 points so far this year, well above the 50-point threshold that separates optimism from pessimism. According to the Central Bank, businesses remain highly optimistic about both the current economic situation and positive business prospects for the next three months. Nevertheless, the September reading showed that manufacturing and commerce were the sectors showing a less upbeat assessment than in the month before. Furthermore, firms were less optimistic about their financial situation, with the sub-index dropping from 62 in August to 61 points in September. Finally, the inventories sub-index fell 3 points in September to reach 54 points, reversing the upward trend started in April this year. According to the survey, the fall in the inventories sub-index indicates that businesses may have reached a desired level of inventories, suggesting a slowdown in the pace of economic growth in the coming months.
Author: Ricardo Aceves, Senior Economist