Economic outlook continues to be overcast – Survey

Monday, 4 December 2023 01:25 - - {{hitsCtrl.values.hits}}

“Corporates are poised with apprehension as the proposals outlined in Budget 2024 take effect with a sense of uncertainty clouding expectations for the upcoming fiscal year,” leading business magazine LMD reports, in its December edition.

LMD states: “Optimism among business executives that the economy will ‘improve’ over the next 12 months has diminished, falling to eight percent in November. This represents a decrease of five points from the preceding month’s 12%.”

The leading magazine adds that 19% of the survey sample expect the economy to ‘stay the same,’ which is lower than the 27% recorded in October.

“A whopping 73% believe the economic situation will ‘get worse,’ marking a substantial increase of 12 points compared to the preceding month,” it notes.

There has also been a decline in optimism of anticipated sales volumes ‘getting better’ over the next 12 months with nearly a quarter (23%) saying so, that’s six percentage points lower than in October.

“Additionally, more than one in five respondents (23%) believe that sales numbers will ‘remain the same’ as opposed to 20% previously.

Only 11% of survey respondents say that volumes ‘increased’ compared to the past 12 months, which LMD says “is a notable decrease of 13 points from October.” And 12% reveal that their sales numbers ‘stayed the same’ while more than three-quarters (77%) reported a reduction.

“Caution dominates the outlook for sales volumes to ‘get better’ in the next three months with only 14% saying so, a slight decrease from the 17% recorded in October.

LMD’s publisher, Media Services, says the latest edition of the magazine will be released shortly. Its digital edition will also be shared on WhatsApp and the publisher’s social media platforms.

The magazine’s cover story unveils the pioneering Digital Readiness Index (DRI) with a listing of the corporate houses that a survey conducted by the University of Kelaniya has compiled. The full story will be uploaded on LMD’s website (www.LMD.lk).