Business confidence regains lost ground

Tuesday, 16 January 2024 01:13 - - {{hitsCtrl.values.hits}}

Leading business magazine LMD reports in its January edition that “the barometer of business confidence has regained lost ground but uncertainties loom.”

The Business Confidence Index (BCI) rose by 27 basis points, it notes, to register 85.

“While the biz barometer has shown a degree of volatility in its trajectory in recent months, the sudden upswing suggests a narrative of uncertainty: the index, which fluctuated between 73 and 81 from August to October, plummeted to 58 in November (a 15-month low), possibly influenced by the prospect of new taxes being levied in Budget 2024,” LMD notes.

PepperCube Consultants, which is conducting the exclusive monthly survey for LMD says, “The Budget proved to be less disruptive than initially anticipated, which has resulted in an improvement in the index. This stems from a sense of optimism about the economy, investment climate and maintaining business volumes.”

LMD states that the rebound in the BCI means that the barometer is by and large on a par with its 12-month average (83) as well as where it stood a year ago (86), although it continues to languish at a notable 38 points below the all-time average of 123.

A spokesperson for LMD adds, “This likely being an election year instils a sense of unease in business circles uncertainty looms about the prospect of political instability.”

And as PepperCube notes, “Inflation and taxes continue to challenge the nation and the business community.”