Description

Tariff hikes intensify business uncertainty.

The information compiled in this Report shows that the rise in commercial tensions has increased business uncertainty, although it has not generated a pessimistic climate.

Some respondents say that the effects will be mainly negative, while others believe that there will be no significant consequences for their businesses or will even be positive in some cases. 

What is more widespread is the tone of caution and doubts about the timing and intensity of these potential effects, which is why firms state that they are not making any substantial changes to their plans, at least for the moment.

This Report includes a box with detailed information on the possible consequences of the trade conflict from the firms' perspective (page 13).

Financial conditions: less restrictive and new normal.

On a quarterly basis, the Business Perceptions Report (IPN) consults companies on their own assessment of the conditions for accessing credit. The firms perceive a lower degree of restriction, which is reflected in lower interest rates and greater acceptance of credit applications. 

In any case, the firms themselves report that their demand for credit remains subdued and they do not expect much change in the future. In addition, there is relative consensus that financial conditions will remain tighter than in the past and will not revert to their pre-pandemic characteristics.

More intentions to invest, but in a context of greater uncertainty, which calls for caution.

Every six months, the IPN asks interviewees about their investment plans. On this occasion, it stands out that a higher percentage of firms of varied sizes say that they have investment planned for the current year.

However, there is a higher proportion of firms saying that they are evaluating the execution of their investments, mainly because of the increase in global uncertainty.