The Uruguayan economic activity’s advanced indicator, the Ceres Leading Index (ILC), fell by 0.3% in July, marking a two-month decline after five consecutive positive rates.
This was reported by the Economic and Social Reality Studies Center (Ceres).
The July Diffusion Index (ID) was at 40%, meaning that positive variables did not reach half of the ILC components.
Though the first quarter witnessed a rise in activity, influenced by tourism and domestic consumption, the subsequent months revealed that the economy failed to solidify steady growth.
Projections for 2023 have been revised downward, and official estimates predict an average growth of 1.3% for the year, influenced by drought, competitiveness issues affecting exports, and currency differences with Argentina.
Ceres anticipates modest growth for the year but expects negative pressures to ease, leading to a significant increase in activity in 2024.
The ILC is used to predict changes in the economic cycle but does not allow for quantitative projections on economic activity levels.