BCRP: short-term business pessimism continues

BCRP: short-term business pessimism continues

Of 18 expectations indicators collected by the issuing entity, only six are in the optimistic range and expect better results from the economy and the industry in 12 months.

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In the latest survey of business expectations carried out by the Central Reserve Bank of Peru (BCRP), it is observed that pessimism continues to prevail in the short term (three months) in most indicators.

As of January of this year, of 18 indicators in total, only six are in optimistic territory, exceeding 50 points. All positive results focus on projections of the economy, the sector, company situation, product demand, personnel hiring and investment for 12 months (see graph).

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Regarding the current situation of the production level, companies reduced their expectations to 41.5 points, as well as purchase orders compared to December. Although the business, sales and demand projections were recovered, they barely touched a maximum of 45.8 points.

Juan Carlos Odar, director of Phase Consultores, recognizes that For the first time since May 2023, expectations improved to three months but none reached 50 units.

And, the ugly thing is that there is an incomplete economic rebound “consistent with the fact that less occurred in January 2024 than in January 2022”, apart from the weakened fiscal accounts.

ABOUT THE AUTHOR:

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Trained at the Jaime Bausate y Meza University. In constant learning. Economics is the branch of journalism closest to the people and my duty is to be a bridge to information.

Source: Larepublica

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