Description

Sales and capacity utilization rebound, supporting firms’ performance.

Firms show a more favorable perception of their performance, associated with higher utilization of installed capacity and an increase in sales. This occurs in a context in which costs have remained stable or have exhibited more limited increases, which has contributed to an improvement in profit margins. Likewise, in line with the recent behavior of costs, for the first time since being measured in the survey, the proportion of firms that expect one-year-ahead inflation to be similar to normal predominates.

While heterogeneities persist across sectors, firms, and Macrozones, these are expressed mainly in differing degrees of improvement or stability, rather than in the presence of sectors with a generalized deterioration in performance. Differences are also observed according to the destination market of their supply, with greater dynamism among export-oriented sectors.

Business expectations improve, with more favorable signals for the next twelve months.

Firms anticipate a more positive scenario, with prospects of an increase in sales and profit margins, along with stable costs. In the latter regard, some interviewees mention the effect of the dollar’s decline as a factor that would be contributing to containing cost pressures.

The above leads to more favorable expectations for performance this year, although a significant share of respondents indicates that these effects would become more visible starting in the second half of the year. In the formation of these expectations, both the improvements observed in the last quarter and the perception of more favorable conditions associated with potential regulatory changes converge.

Overall, a tone of caution persists among firms, and several indicate that, for the time being, they have not made changes to their business plans while awaiting developments in the first part of 2026.

More flexible financial conditions, in a context of still weak credit demand.

Financial conditions continue to show gradual easing. Some companies report shorter processing times and a reduction in collateral requirements by banks. The proportion of firms indicating a deterioration in access to financing has reached historical lows, while interest rates have continued to lose relevance as a restrictive factor. In addition, the rejection rate of credit applications stands at its lowest level since records began in the survey.

Despite the above, demand for financing does not show a rebound and, in fact, declines slightly at the margin. Improved expectations have not yet fully reversed firms’ caution, although firms show a greater willingness to take on debt than in previous reports.