Chile: Business confidence slips to negative territory for the first time this year in November
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by ICARE and the Universidad Adolfo Ibáñez fell from 53.6 points in October to 49.0 points in November. The print marked the first time since December 2017 that the index fell below the crucial 50-point threshold that separates optimism from pessimism among Chilean businesses.
In November, all four sectors surveyed showed a deterioration from the previous month. Although the breakdown by sector is not yet available, two of the four sectors were in negative territory in the surveyed month—one more than in October. Overall, labor market dynamics weakened slightly in November, with planned investment activity and expected output levels also deteriorating. Meanwhile, inflationary expectations remained broadly unchanged in the month. Lastly, despite a soft current demand environment, sentiment regarding the general business situation as well as expectations of the country’s economic situation remained well entrenched in positive territory.