Economic Indicator Briefing - Peru - Economic Activity

In November, economic activity expanded 4.2% over the previous year. The result came in well above the 0.8% annual rise registered in the previous month as well as market expectations, which had the economy growing 3.7%.
The acceleration over the previous month was broad-based, as all major categories composing the index showed an improvement. That said, growth was mostly driven by a sharp increase in government services, which raised 25.9% annually (October: +5.1% year-on-year). Moreover, manufacturing and commerce – which account for 16.0% and 14.6% of total economic output respectively – also improved over the previous month. While manufacturing contracted 2.5% (October: -6.5% yoy), commerce swung from a 0.2% drop in October to a 2.7% expansion in November. Finally, the insurance and finance sector increased 16.3% (October: 14.2% yoy).

Despite November's positive reading, the annual average growth rate inched down from 1.0% in October to 0.9%, which marked the lowest level since January 2002.

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