Description

Overall business performance is showing early signs of deterioration, consolidating the outlook for a scenario of reduced activity. The firms report drops in sales levels in recent months, but with varying perceptions among different items.

Rising costs persist, although the pressures associated with the availability of inputs and inventories have tended to ease slightly in comparison with the previous quarter. In this context, sale prices are still on an upward trend.

The percentage of firms looking for new workers has not changed, in a scenario where hiring difficulties persist, but have posted a decline with respect to what was reported in January.

Although firms perceive an increase in their labor costs, average wages have been adjusted by CPI inflation or less, while their frequency has been reduced significantly compared to what used to be the norm.

A deterioration in financial conditions is perceived, with the rise in interest rates being the main cause behind this sentiment. The percentage of firms that applied for credit in the first half of the year has declined. Not needing it continues to be the main reason for not requesting credit, although its preponderance has decreased compared to six months ago.

The firms' expectations point to a deterioration in their performance, mainly associated with a reduction in future sales. At the same time, they foresee a stabilization of their prices while costs continue to rise, albeit at a slower pace than was their previous experience.

The share of firms that expect inflation to be well above its normal level in the next twelve months is maintained, which has had an effect in terms of either postponing or anticipating some of their decisions.