Chile Business Confidence June 2022

Business confidence came in at 42.7 in June, down from May’s 46.5. June’s result marked the weakest sentiment since August 2020. As a result, the index moved further below the 50-point threshold, indicating sustained pessimism among businesses.

June’s fall was driven by a deterioration in sentiment in the volatile mining sector, potentially as a result of lower copper prices and concerns over higher taxes on the sector under President Boric. Moreover, industrial and construction sentiment declined. In contrast, sentiment in the retail sector slightly improved.

Panelists surveyed for this month’s LatinFocus report project a 0.0% variation in fixed investment in 2022, which is down 0.9 percentage points from last month’s forecast. For 2023, they project fixed investment to fall 0.2%.

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