Waruni Jayathunga
In an exclusive release to the Daily FT, leading business magazine says that “business confidence has nudged up to match its all-time high amid multiple sensitivities.”
LMD notes, in its forthcoming March edition: “The LMD-PEPPERCUBE Business Confidence Index (BCI) reached its all-time high in February, by climbing six basis points to 204, from 198 in the previous month.”
“This is its highest level since September 2015 when the index recorded the same score – in the aftermath of a General Election and the formation of a coalition government,” it adds.
According to LMD, the unique index now stands 81 points above its historical median of 123 and is 75 points higher than the 12 month average of 129. “For context, the BCI registered 81 basis points at the same time last year,” it notes.
Meanwhile, PepperCube Consultants asserts that “the February BCI reflects a narrowing gap between economic expectations and business performance, driven by rising confidence and stronger sales projections.”
However, it adds: “For optimism to translate into long-term stability, critical concerns such as taxation, inflation and Government inefficiencies must be addressed.”
As for the future, a spokesperson for the magazine explains: “The big question is whether the index will pass its all-time high in the aftermath of the Budget.”
She continues: “How corporates view the Government’s fiscal plans presented on 17 February will determine where the BCI heads from here on.”
