Economic sentiment rallies: Survey

Sentiment surrounding the economy improved in January with 43% respondents to the latest LMD-Nielsen Business Confidence Index (BCI) survey saying conditions will improve in the next 12 months – a marked increase from the mere 19% who expressed optimism in December.

Meanwhile, slightly more than one in five (versus 37% in the preceding month) of those consulted by Nielsen believe the economy will deteriorate during this period while the remainder expect conditions to remain the same.

According to Nielsen’s January survey, the outlook for the long and short terms appears to have improved. 

More than three-quarters (compared to 47% in the previous month) of those surveyed state that sales volumes will increase this year while only 5% anticipate a decline.

As for the next three months, 34% (up from 14% in December) of those polled feel that sales volumes will improve although half of the respondents say prospects are likely to ‘stay the same.’

The investment climate continues to be viewed in a negative light by the majority as a little over half of businesspeople consulted describe conditions as ‘poor’ or worse. On the other hand, 20% consider prevailing conditions to be favourable while another 30% say the investment climate is ‘fair.’

Media Services, LMD’s publisher, says the February edition of the magazine has been released. Its digital edition is also available on WhatsApp and the publisher’s social media platforms.

Its Cover Story features an exclusive interview with the Chairman and Chief Executive of Hayleys Mohan Pandithage, in which he discusses Sri Lanka’s response to the coronavirus pandemic – particularly from an economic and business standpoint – and the nation’s hub prospects (for the full story, log onto www.LMD.lk).