Biz confidence dips

Monday, 7 April 2025 05:34 - - {{hitsCtrl.values.hits}}

In an exclusive release to the Daily FT, leading business magazine LMD reports that “business confidence has dropped a few rungs after briefly matching its all-time high.”

In the aftermath of the Budget 2025, the LMD-PEPPERCUBE Business Confidence Index (BCI) fell from February’s record-equalling high of 204, shedding seven basis points to settle at 197 in March, it notes.

“Despite the dip, however, the index stands 74 points above its historical median (123) and is 59 points higher than the 12-month average of 138.

For context, the barometer registered 93 basis points at the same time last year,” LMD explains.

Meanwhile, PepperCube Consultants notes that despite the BCI’s marginal fall, the business community remains optimistic – partly due to the Government’s maiden Budget.

It explains that the index signals “a period of consolidation, where businesses are navigating the balance between economic stabilisation and operational challenges alongside long-term investment uncertainties.”

A spokesperson for LMD adds: “As we speculated last month, the index did not surpass its all-time high following the Budget. Businesspeople remain cautious as the Budget offered little relief despite the promises and expectations at election time.”

LMD’s publisher, Media Services, says the April edition of the magazine will be released shortly. Its digital version has been shared on the publisher’s social media platforms (and the full BCI report will be uploaded on its website – www.LMD.lk).