Peru: Business confidence deteriorates in January
Business confidence tumbled to 41.2 in January, down from December’s 49.5 and dropping to the lowest level since August. As a result, the index moved further below from the 50-threshold, separating pessimism from optimism among businesses.
The downturn in firms’ expectations was broad-based in January, and likely driven by a further spike in domestic Covid-19 cases during the month. As such, firms’ views regarding their sector, the labor market, future demand for their products, company investment and the company’s financial situation all deteriorated, with all subindices recording pessimistic readings in the month.