Biz confidence nudges up in January

The latest edition of leading business magazine LMD reports that the LMD-Nielsen Business Confidence Index (BCI) has registered a mild turnaround, moving up by six basis points to reach 123 in January.

Nielsen’s Managing Director Sharang Pant remarks in the magazine that “business leaders show optimism on the economic front and for their own businesses … The short-term outlook is positive as well.”

However, reflecting on the year that was, he observes: “After a fairly stable period in the first five months of 2016, business sentiment reflected huge fluctuations. The floods in May, the implementation and roll back of VAT in May-July and a budget that did not please businesses added to the woes. The year ended on a disappointing note with the BCI dropping to 117 – its lowest level since July 2013.”

The exclusive monthly survey reveals that nearly four-in-10 respondents feel the state of the economy will improve in the next 12 months.

Where business prospects are concerned, LMD notes that almost half (versus 39% in the prior month) of the sample population are of the view that their sales volumes “will get better” in the next 12 months. And only 20% hold a negative outlook vis-à-vis business prospects, while 31% expect prevailing conditions to persist.

Looking ahead, a spokesperson for LMD states that “the exclusive monthly poll also suggests that there are mixed views on the state of business and the economy. This may be due to confusion over where the nation is heading. Signs of politicking result in renewed perceptions of political instability and that surely cannot be healthy for business confidence.”

LMD’s publisher Media Services says the February edition of the magazine has been released to bookstores and supermarkets. For the full BCI report, go to www.LMD.lk.