Business confidence ‘steadies’

Saturday, 2 March 2024 01:14 - - {{hitsCtrl.values.hits}}

In its March edition, leading business magazine LMD reports that “the gauge of corporate sentiment remains steady, albeit that it is way short of its all-time average.”

LMD notes, “The LMD-PEPPERCUBE Business Confidence Index (BCI) continues to be lacklustre… but steady; it has remained in the 81-85 range for three successive months.

“In February, the index registered a one basis point dip to 81, which is a massive 42 notches shy of its all-time average (123) although compared to 12 months ago (63), the barometer has in fact gained 18 points,”

LMD adds

It notes that PepperCube Consultants attributes the dip in the index to the impact of the VAT hike, “There is a degree of buoyancy regarding the investment climate and expectations about maintaining sales volumes have remained relatively unchanged over the past four weeks – this despite the marginal drop in optimism regarding the economy over the next 12 months.”

LMD says that “the BCI is unlikely to gain any substantial ground at least until there’s clarity on the timing and conduct of one more election this year.”

A spokesperson for LMD explains, “As we said last month, the index is unlikely to gain any substantial ground at least until there’s clarity on the timing and conduct of one more election this year.”

She cites the President’s Media Division’s recent text alert that “the presidential election will be held within the mandated period and according to the current timeline, general elections will be held next year.”

LMD’s publisher, Media Services, says the latest edition of the magazine will be released shortly. Its digital version has been shared on the publisher’s social media platforms (the full BCI report will be uploaded on its website – www.LMD.lk).