Biz confidence in April falls to its lowest in over a decade

The LMD-Nielsen Business Confidence Index (BCI) declined for the second consecutive month, registering 77 basis points in April compared to 90 in March – and LMD notes that since the monthly survey was conducted in the first week of April, it is likely that confidence will fall further in May, following the Easter Sunday attacks.

According to the latest edition of LMD, the BCI is now at its lowest level in over a decade. Moreover, the index is 21 points below where it stood a year ago and 20 notches shy of its average for the last 12 months.

Commenting on this result, Nielsen’s Managing Director Sharang Pant observes that “the GDP growth numbers for the fourth quarter of 2018 were released on 19 March. And the growth of 1.8% in that period was below 2% for the first time since the first quarter of 2014.”

In addition, the business magazine reports that high taxes, the rupee’s depreciation and inflation are among the major concerns in corporate circles. A spokesperson for LMD states: “While sentiment may have been expected to nudge upwards following the budget presentation, businesspeople appeared to be more pessimistic, possibly due to the prospect of a presidential poll this year weighing on their minds – and of course, there’s now the aftermath of the 21 April attacks to factor in.”

Media Services, which publishes LMD, says the latest edition of the magazine will be released to leading bookstores and supermarkets on 10 May (the full BCI report will be uploaded on LMD’s website – www.LMD.lk – on Tuesday 7 May).