Peru: Business confidence slips in November but remains at healthy levels
December 27, 2010
In November, the business confidence indicator (indice de Confianza Empresarial) published by the Central Bank, inched down from 71 points in October to 70 points. The reading represented the 11th consecutive month that business sentiment lingered around 70 points, remaining well above the 50-point threshold that separates optimism from pessimism. According to the Central Bank, firms remain optimistic about future economic prospects for the next three months and reported a favourable current business situation. The November reading showed that construction and commerce, as well as transport and telecommunications were the sectors showing more positive results compared to the previous month. Businesses were also optimistic about their financial situation in November, with the sub-index remaining at 62 points for the third consecutive month. Accordingly, a majority of firms maintained to have an easy access to credit. However, according to the survey, less firms plan to increase their staff in the coming months, with the sub-index slipping from 61 points in October to 60 points in November.
Author: Ricardo Aceves, Senior Economist