Economic sentiment remains muted: Survey

Tuesday, 14 December 2021 01:12 - - {{hitsCtrl.values.hits}}

The results of the latest LMD-NielsenIQ Business Confidence Index (BCI) survey indicate that perceptions among business executives about the economic climate over the next 12 months showed signs of improvement in November.

According to the survey, 11% of respondents say conditions “will improve” – up from 8% in the previous month.

However, the majority (55% versus 47% in October) of those consulted by the pollsters continue to have a more pessimistic outlook for the economy while 34% say economic conditions will “stay the same”.

Where the outlook for long-term business prospects is concerned, 65% (versus 86% in the previous month) of survey participants expect sales volumes to increase over the next 12 months, although 17% anticipate a decline in sales.

As for the short term, 41% (down from 43% in October) of respondents believe that sales volumes will improve over the next three months.

Moreover, 40% say that sales will remain the same during this time and another 19% expect them to decline.

When it comes to the investment climate in the country, a mere 5% of the survey sample views conditions as favourable. Meanwhile, the majority (75% compared to 80% in October) describe the investment climate as “poor” or worse while a fifth consider conditions to be fair.

Media Services, which publishes LMD, says the December 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 pays tribute to 50 ‘Captains of Business’ from among Sri Lanka’s corporate and professional communities in LMD’s 2021 A List (for the full story, log onto www.LMD.lk).