Biz confidence continues to rally in November: Poll

The November edition of leading business magazine LMD reports that business confidence has surged by 15 basis points, to 165. The magazine also notes that this reflects a 12-month high forthe LMD-Nielsen Business Confidence Index (BCI).

“Action on the investment and infrastructure front is a key reason for the upswing, as it brings the hope of more employment opportunities and an increase in consumption,”says Nielsen’s Managing Director Sharang Pant, in LMD.

He adds that “a large number of business leaders feel that the economic and business outlook is strong, for the coming months. They are, however, cautiously optimistic about the upcoming budget. And they expect inflation and tax rates to be addressed immediately, as these remain concerns.”

The exclusive monthly survey reveals that businesspeople are ratheroptimistic about the country’s economic prospects, with at least four-in-10 respondents expecting conditions to improve, and a similar number envisioning more of the same in the future, whileonly 10% hold a negative outlook.

Where business prospects are concerned, LMD states that “two-thirds of the survey sample believe that business (i.e. sales volumes) ‘will get better’ in the next 12 months, whereas a mere 3% state that sales volumes will deteriorate over this period. Another 31% expect the status quo to be maintained.”

Looking ahead, a spokesperson for LMD statesthat the magazine continues to be “cautious about the trajectory of the BCI in the near term, factoring in the potential impact of any adversely perceived policy measures in Budget 2017, its passage through the House and what eventually turns out to be the reality, when the new provisions are gazetted.”

Its publisher Media Services says the November edition of the magazine will be released to bookstores and supermarkets in the next day or two (for the full BCI report, go to www.LMD.lk).