Crédito y Caución is expecting an increase in business for machinery companies that depend on government purchases in the coming months.
Consumer credit lending stopped falling - after 22 months of contraction - and is expected to increase again. Therefore, Crédito y Caución expects a further improvement in this sector.
Prospects for the Mexican economy are less positive than they were three months ago. The slowdown of the US recovery is affecting Mexico in many ways.
The impact of februarys earthquake in Chile have slowed the economy in the first half of this year, but the solid macroeconomic fundamentals will remain in place.
Crédito y Caucións short term outlook for the consumer durables/retail sector is still mixed. Analysts generally predict growth in retail spend of approximately 2% in 2011.
There is likely to be some rebound in paper consumption as the UK moves out of recession, but in the long term the downward trend is expected to continue.
The HM Revenue and Customs [HMRC] `time to pay? scheme, allowing viable customers who cannot pay to make payments over a longer period, is improving the insolvency figures.
Since the beginning of the year, the Expected Default Frequency of most of the countries has shown some volatility. Nevertheless, the general tendency has been that of improvement.
Crédito y Caución currently expects corporate insolvencies to decrease 10% this year and 5% in 2011. Despite this improvement, business failures remain higher than in the pre-crisis years.
The Italian food sector has shown a slight increase in late payments, but Crédito y Caución expects a levelling-off or even better results in the second half of the year.
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