Biz confidence recovery continues despite lockdown

For the second consecutive month, the latest LMD-NielsenIQ Business Confidence Index (BCI) recorded an uptick, indicating that sentiment continues to improve. The index registered six basis points from the previous month to 104 in September.

LMD notes that this represents a four month high although it marks a deterioration compared to where the BCI stood a year ago (120) and places it one point below its 12-month average.

NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya notes that “the business environment is persistently operating under dire conditions in terms of import restrictions, foreign exchange restrictions, the depreciating value of the rupee, travel restrictions, COVID-19 related shutdowns and many other challenges.”

Where the future of the index is concerned, she says: “There is a sense of hope as businesses are adapting to new norms as they forge ahead and it is likely that the BCI will continue to improve.”

Commenting on the outlook for the index, a spokesperson for the magazine explains: “Given the escalating economic and forex concerns, and fears of shortages of items such as food and fuel, the Government’s approach to these issues will likely determine where BCI heads in the near term.”

“The forthcoming Budget proposals are also likely to have an impact in the short term at least,” she adds.

According to Media Services, the latest edition of LMD will be released shortly while its digital version is available on WhatsApp and its social media platforms (for the full BCI report, visit the LMD website).