Ecuador business confidence rose last month to its highest level since January as executives reported a rebound in consumer spending, Deloitte & Touche LLP said.
An index measuring company confidence in Ecuador rose six points to 94.6 out of a possible 250, halting a two-month decline, the consulting firm’s Quito office said today in a report. Deloitte said 60 percent of companies and 84 percent of retailers surveyed reported higher sales than last year in November, traditionally one of the most important months for consumer sales as customers begin shopping for Christmas gifts.
Ecuador’s gross domestic product, rebounding from its worst year in a decade, will meet the government’s growth target of 3.7 percent this year, led by businesses outside the oil industry, Economic Policy Minister Katiuska King said last week. A law approved last month creating tax breaks and legal protections for investors also boosted sentiment, Deloitte said.
“Business people surveyed are positive about budgeted sales targets and their ability to meet them,” Deloitte said in the report. “The data confirm a reactivation in consumption.”
About two-thirds of respondents said monthly inflation was probably unchanged in November, at 0.25 percent. The South American nation’s National Statistics and Census Institute is scheduled to release November price data tomorrow.
Deloitte didn’t publish the number of survey participants or report a margin of error.