Biz confidence recovers

The latest LMD-NielsenIQ Business Confidence Index (BCI) survey registered an increase of 11 basis points to 98 in August although, as LMD notes, the poll was conducted in the first week of the month when the islandwide immunisation campaign was at its peak – and before COVID-19 cases and fatalities began to surge.

The pioneering business magazine also states that the BCI remains below its 12 month average (106) and 19 points shy of where it stood a year ago.

Commenting on the results of the latest survey, NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya says: “By the end of July, there were signs of COVID-19 cases abating with the death rate also gradually declining.”

“The vaccination drive is also steadily progressing with 99% of the population over 30 having obtained the first dose of the vaccine and around half of this group receiving both doses on 23 August,” she adds.

As for sensitivities impacting the index, Miyanadeniya explains that with the escalation of death rates and new cases, in addition to the shortages of gas, milk and sugar, as well as the announcement of an islandwide lockdown, “the BCI and the Consumer Confidence Index (CCI) are unlikely to fare well in September”.

A spokesperson for LMD’s publisher Media Services elaborates: “With new cases and deaths on the rise, and the extension of the nationwide lockdown, the index may plunge to where it stood last month.”

Media Services says the print edition of the magazine will be released shortly while its digital version is available on WhatsApp and its social media platforms (for the full BCI report, visit www.LMD.lk).