Biz confidence improved ahead of festive season

The LMD-Nielsen Business Confidence Index (BCI) improved for the second consecutive month to 138 in April, recording an increase of 12 basis points compared to the previous month – although the uptick may not hold in the short term, given the spike in COVID-19 cases and fatalities, a spokesperson for the magazine’s publisher, Media Services, says. 

LMD notes that this marks the highest point for the index over the last 12 months but it points out that the survey was conducted in the first week of April – prior to the festive season.

Nielsen’s Director – Consumer Insights Therica Miyanadeniya offers insights into the latest results: “The New Year euphoria seems to have taken hold of both businesses as well as the general public. Sentiment was high [at the time of the survey] ahead of the Avurudu celebrations…” 

According to LMD, the impact of COVID-19 continues to be highlighted as the most pressing issue for businesses. Furthermore, the spread of the coronavirus is considered to be the main issue for the nation.

Commenting on the future of the index, Miyanadeniya explains that the BCI and Consumer Confidence Index (CCI) are likely to fall with the outbreak of a third wave of the virus.

“Despite commencement of the roll out of the second dose of the vaccine and reports of new consignments being due soon, the rise in cases following the festive period as well as the new restrictions could undermine sentiment in the near term,” the spokesperson cautions.

Media Services says the latest edition of the pioneering magazine will be released shortly while its digital version is available on WhatsApp and its social media platforms. The full BCI report is available on the LMD website.