Economic sentiment picks up: Survey

Monday, 18 October 2021 04:49 - - {{hitsCtrl.values.hits}}

The results of the latest LMD-NielsenIQ Business Confidence Index (BCI) survey indicate that sentiment surrounding the economy improved in September as 20% of respondents anticipate an improvement in the next 12 months – up from a mere 6% in the previous month.

However, the majority (46%) of those consulted by the pollsters believe that economic conditions will deteriorate in the coming 12 months and another 34% expect the economy to ‘stay the same’.

Moreover, the outlook for business over the short and long-term appears to have waned.

When it comes to the next 12 months, 51% of the survey sample expects sales volumes to increase compared to the 60% who said so in August.

In contrast, 19% of survey participants say that sales are likely to decline with the remaining 30% expecting them to ‘stay the same’.

As for the short term, 37% of respondents have a negative outlook for the next three months whereas a quarter expect sales to improve.

Meanwhile, the outlook for the investment climate continues to be largely negative. According to the survey, 71% of corporate executives do not consider this to be a good time to invest while 16% describe conditions as being ‘good’ or better.

Media Services, which publishes LMD, says the October edition of the magazine has been released. Its digital edition is also available on WhatsApp and the publisher’s social media platforms.

Its Cover Story features an exclusive interview with the Chairman of the Ceylon Chamber of Commerce, Vish Govindasamy, in which he discusses Sri Lanka’s business landscape, and his outlook and the chamber’s expectations for 2022 (for the full story, log onto the LMD website).