Business confidence continues to languish

The latest edition of LMD reveals that the LMD-Nielsen Business Confidence Index (BCI) remained virtually unchanged in July – at 101 basis points compared to 102 in the preceding month – although the barometer continues to languish well below its all-time average of 129.

Nielsen’s Managing Director Sharang Pant noted that “prices are moving up again as the National Consumer Price Index (NCPI) stood at 2.1% in May versus 1.6% in April”. He continued: “The increase is reflected in both the food and non-food baskets, which are expected to move up further following the second round of fuel price increases in early July.”

LMD reports that the main concerns within the business community are high taxes, the political environment and inflation. The magazine also notes that businesspeople are now looking to tackle these challenges themselves.

One respondent to the unique monthly survey said that “we have managed to expand our business and increase sales revenue. This is due to the positive decisions taken by our company”.

Similarly, another executive stated: “Our company is displaying signs of growth due to the fact that it has executed several strategies during the last few months to counter any adverse effects that arise from the economy.”

“Since there’s no real cause for optimism, we believe that the road ahead could be challenging for businesses,” says a spokesperson for LMD’s publisher Media Services, adding that “business confidence is unlikely to pick up appreciably in the short term”.

Media Services said the latest edition of the magazine has been released to leading bookstores and supermarkets yesterday. For the full BCI report, visit www.LMD.lk