Business confidence remains muted

Saturday, 1 July 2023 00:12 - - {{hitsCtrl.values.hits}}

“Biz confidence remains muted as the pros and cons on the economic front even out,” leading business magazine LMD reported, in its forthcoming July edition.

It reported: “The LMD-NielsenIQ Business Confidence Index (BCI) gained a mere one basis point in June to register 103.”

LMD added: “If one were to be thankful for small mercies, the barometer has gained ground from a year ago when the index plummeted to under 50 (49 to be precise) and is nearly 20 notches higher than the mean for the last 12 months.”

“In contrast, the BCI continues to languish at well below its all-time average of 124 points – one has to track back to March last year when the count exceeded this benchmark; and that as we know, was ahead of the mayhem that engulfed our island in April,” it added.

Meanwhile, NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya cautioned in the magazine: “Even though there is an undercurrent of improvement, the effects are still not felt by businesses…”

“Unless visible action is taken to improve the status quo, both the BCI and consumer confidence will continue to remain in an indeterminate state,” she added.

A spokesperson for LMD said: “The burning question for the weeks ahead is whether the pros will outweigh the cons. If they do, we expect the BCI to stand firm and not fall below the psychologically important 100 mark.”

She added: “In addition, the forthcoming local debt restructuring outcome will likely weigh on business confidence in the short term at least.”

LMD’s publisher, Media Services, said the July edition of the magazine will be released shortly. Its digital version has been shared on WhatsApp and the publisher’s social media platforms (the full BCI report is available at www.LMD.lk).