Biz confidence nosedives

Saturday, 3 May 2025 00:54 - - {{hitsCtrl.values.hits}}

“Tariff turmoil shatters business confidence,” business magazine LMD reports, in its soon to be released May edition.

In an exclusive release to the Daily FT, the magazine notes that “business sentiment has nosedived, leaving the record-equalling highs of recent months in the rear-view mirror.”

“The LMD-PEPPERCUBE Business Confidence Index (BCI) fell substantially in April – following its record-equalling high of 204 in February – shedding 25 basis points to settle at 172, from 197 in March,” LMD observes.

Despite the decline, however, it explains that the index remains 49 points above its historical median (123) and 28 notches higher than the 12-month average (144). “For perspective, the barometer stood at a lowly 96 at the same time last year,” it adds.

According to PepperCube Consultants, “the free fall in confidence signals a marked shift in business sentiment, primarily driven by external headwinds such as the imposition of US tariffs and growing domestic dissatisfaction with the Budget 2025.”

A spokesperson for the leading magazine says: “As for the direction of the BCI in the near term, much will depend on how the Government navigates the unfolding US-led trade war and delivers on a plethora of Election promises.”

“The outcome of the Provincial Council Elections and the fate of the Sri Lankan Rupee will also be on the watch list of the business community,” he adds.

LMD’s publisher, Media Services, says the May 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).