Peru | Activity loses impulse in October: transitory or beginnings of a slowdown?

Economic activity grew 4.6% year-on-year in October, a negative surprise for the market. In an analysis comparing GDP figures for 2021 with those for 2019 (pre-health crisis situation), activity decelerated to 1.2% (September: 3.1%).

Key points

• Key points:
• Activity was sustained in October mainly by the non-primary component, despite it losing momentum growing 2,1% with respect to the same month of 2019. Within this category, services such as financial and telecommunications, construction activity and non-primary manufacturing continued to be very dynamic, but non-primary manufacturing, particularly that related to the production of materials and construction equipment, decelerated.
• In seasonally adjusted terms, the official statistics institute indicates that production decreased 1.2% in the month (with respect to the previous month), while in the previous three months it advanced at an average monthly rate of 1.0%.
• Available indicators suggest that the economy's expansion trend continues at the beginning of the fourth quarter. However, public investment and business confidence signal a slowdown of investment looking forward.

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