The decrease in business confidence was explained, first of all, by the unfavorable perception of the economy for the next semester, which decreased by 7.8 pps.
The second variable that had a negative influence was the unfavorable perception of the current situation of the companies, which experienced a decrease of 3.1 pps. In addition, the level of inventories increased by 0.3 pps.
Compared to June last year, the ICCO presented a decrease of 15.9 pps when it stood at 33.7%.
“In annual terms, the drop in merchant confidence is explained by a 28.5 pps drop in the company’s current economic perception, as well as a 12.5 pps decrease in economic expectations for the next semester and the 6.8 pps increase in the level of inventories,” said Fedesarrollo.
In what has to do with the Industrial Confidence Index that is part of the Business Opinion Survey, for the sixth month of 2023 it stood at -2.2. This is an increase of 1.9 pps compared to the previous month and a reduction of 13.8 pps compared to June 2022.
The Fedesarrollo report warns that “the positive monthly variation in industrial confidence in June is explained by production expectations for the next quarter that reflected greater optimism, an item that increased by 6.5 pps (26.1% vs. 19.6% in May 2023)”.
It adds that “nevertheless, there was a decrease of 0.7 pps in the current volume of orders (-26.1% vs -25.4% in May 2023) and the level of stocks remained constant.”
The survey also shows that “in annual terms, the decrease in industrial confidence was mainly explained by the reduction of 19.8 pps and 8.1 pps in the current volume of orders and production expectations for the next quarter, respectively. Likewise, the annual variation was explained by the increase of 13.4 pps in the level of inventories”.