Peru: Economic activity growth eases in August
Latest reading: Economic activity expanded 3.5% compared to the same month of the previous year in August, which was a deterioration from July’s 4.5% increase but broadly in line with market expectations. August’s slowdown was affected by the reduced number of working days this August compared to last. Looking at sectors, growth in commerce, construction and manufacturing lost pace, while mining and hydrocarbons activity accelerated amid more copper and molybdenum production.
On a monthly basis, economic activity rose 0.6% in August, which was below July’s 1.5% expansion. Meanwhile, the trend improved slightly, with the annual average growth of economic activity coming in at an over one-year high of 1.7% in August, up from July’s 1.4% reading.
Panelist insight: On the outlook, BBVA analysts said:
“In our base scenario we continue to forecast that GDP will grow between 3.0% and 3.5% year-on-year in the second half of the year (2.5% in the first half), supported, for example, by higher household consumption associated with withdrawal of pension funds, in the decrease in interest rates, and in the gradual consolidation of business expectations in the optimistic range, factors that favor a better performance of spending carried out by the private sector.”