Business and trade lift confidence in Ecuador’s economy

Business confidence in Ecuador rose in July, with all four sectors tracked by the central bank, services, trade, construction and manufacturing, moving into favorable territory.

The Economic Expectations Index reached 56.2 points, up three points from June and above 50 for a sixth consecutive month, according to the Central Bank of Ecuador. The reading suggests greater optimism among companies, but it does not directly measure how fast the economy is growing.

The index draws on the bank’s monthly business opinion survey, which gathers views from executives at more than 1,700 companies. It tracks expectations for sales, production, employment and business conditions on a scale from zero to 100. Scores above 50 indicate stronger confidence, while lower scores reflect weaker expectations.

Services led the July results at 60 points, an increase of 4.5 points from June. The central bank linked the rise mainly to stronger sales and billing tied to tourism, the gradual normalization of economic activity and expectations surrounding the start of higher-education enrollment.

Trade recorded one of the sharpest improvements, rising to 53.7 points from 49.5 in June and moving into favorable territory. Companies cited the completion of public-sector contracts, early inventory accumulation ahead of fourth-quarter demand, and sales of electric vehicles and power-generation equipment.

Construction remained above the favorable threshold but lost momentum, falling 4.4 points to 53.1. Companies pointed to port infrastructure work, home sales and administrative approval of delayed payment certificates as supports. Economists Fernando Larrea Estrada and Juan David Espinoza urged caution, saying improved expectations still need to translate into jobs and stronger household conditions.