Latin American economy edging closer to recovery
Headline Sales Managers’ Index was 49.5 – up from 49.3 in December. Sales of goods and services, as expressed by the monthly Sales Growth Index, continued to increase and hit the highest level of the index in 2 years at 51.4.
The Prices Charged Index ticked up to 53.6 during the period from 52.6 in December and is also at its highest level since May last year.
However, the January level of the index is significantly lower than the 58.2 reported in January 2015.
The Business Confidence Index, which expresses the sentiment among Sales Managers, remained stable at 51.3 in January, suggesting that although the overall economic situation may be improving, sales managers do not feel that a full blown recovery is inevitable.
Overall, the latest survey data suggests that the improving economic situation in Brazil and Mexico is helping to raise the outlook for the Latin American region as a whole but the recovery will be slow and will likely experience unexpected headwinds, especially from countries such as Venezuela and Argentina. ■