Business confidence dips in June

Monday, 30 June 2014 00:11 - - {{hitsCtrl.values.hits}}

Business magazine LMD says, in its July edition, that “concerns over price levels and taxes are negating a sense of optimism over the economy”.

It reports: “The LMD-Nielsen Business Confidence Index (BCI) remains more or less in line with where it was in May, falling by four basis points on a month-on-month basis, to 138 in June.” A spokesperson for LMD’s publisher Media Services, speaking exclusively to the Daily FT, notes that “survey respondents have a positive outlook on the economy and also the interest rate regime.” They say that these factors are playing a part in sustaining business confidence at around the 140 mark, she adds. LMD also reports that four out of 10 businesspeople interviewed by Nielsen say the Sri Lankan economy will improve in the next 12 months, while 34% expect economic conditions to stay the same. “At the same time, nearly a quarter of those polled state that the economy ‘will get worse,’ with one corporate executive going so far as to remark that “the economy is still unstable and on the decline,” it adds. As for Sri Lanka’s investment prospects, LMD reports that “the corporate community appears to have mixed feelings about the prevailing investment climate – 34% offer a positive review and 36% claim that conditions are ‘fair,’ while three in 10 maintain a more negative stance.” Media Services says that the July edition issue of the pioneering business magazine will be released to bookstores and supermarkets on Friday 4 July.