Jan 2007 Financial News

Business confidence falls

Jan 29, 2007

Business executives are less confident now in the performance of their businesses and the country’s economic outlook than they were three months ago, according to the latest Arthur Lok Jack Graduate School of Business Corporate Confidence Index (CCI).

The CCI, produced quarterly by the business school, found that the Organisation Financial Performance Index declined 17 points from 61 to 44 points.

It showed that “Sixty-six per cent of respondents said their organisation performed better than six months previously, while 14 per cent said their organisions performed worse/much worse.

Looking ahead, executive confidence in the Financial Outlook for their organisations also worsened with this index decreasing from 77 to 50 CCI points for the six-month outlook and from 80 to 72 CCI points for the year ahead.

In a release, the Arthur Lok Jack Graduate School of Business said, “Despite an increase in the proportion of negative responses, over two-thirds of the executives surveyed thought their financial performance would improve over the coming year.”

The survey revealed that the local economic outlook index continued to dip from 60 to 40 CCI points over a six-month period.

“More than 80 per cent of executives again attributed this decline to concerns over uncontrolled Government spending,” the release said.

“Rising inflation remained the second most influential factor.”

In spite of these fears for the local economy, the verdict was different for the global economic outlook index.

For the global economic outlook index there was an increase from 24 to 45 CCI points over a six-month period.

“Reasons cited for this positive outlook were rising consumer spending, the stabilisation of world energy prices and increasing international trade flows,” the release said.

“Executive confidence in the Investment Outlook also decreased this quarter.

“This index fell from 66 to 52 points for the six-month outlook and from 60 to 53 CCI points over the 12-month horizon.

“The majority of executives confirmed planned fixed capital investments for their organisations.


Source:
The Trinidad Guardian
Monday 29th January, 2007

http://www.guardian.co.tt/business1.html