Sep 2016 Financial News

Inflation survey shows dip in CEO confidence

Sep 21, 2016

The Statistical Institute of Jamaica survey of business inflation expectations for the month of June 2016 shows that perceptions of both present and future business conditions worsened, compared to the previous three surveys.

The survey, conducted for the Bank of Jamaica (BOJ) over the period June 6 to 27 among 319 respondents, was released on Monday.

The BOJ, in its summary, said the index of present business conditions fell to 186.8 from the 213.2 reached in the previous survey.

“The index of future business conditions moderated to 153.0 from 167.1 in the previous survey. Both indices reflected declines in the proportion of respondents of the view that conditions were or will be ‘better’. In addition, there were increases in the proportion of respondents indicating that conditions were or will be ‘worse’,” the survey said.

There was, however, an increase in the number of respondents who indicated that conditions were ‘about the same’ for present business conditions, while there was a decline in the number of respondents who indicated that conditions would be ‘about the same’ for future business, the BOJ said.

Respondents indicated that they expect an increase in operational costs, with the largest chunk to emanate from utilities over the next 12 months.

Higher costs for stock replacement, which was the dominant factor for the previous five surveys, was expected to be the second- largest contributor to production costs over the next 12 months, the BOJ indicated. The cost of wages/salaries was the input expense least expected to increase over the next 12 months.

The survey captures the perception of chief executive officers, managing directors and financial controllers about the future movement of prices, current and future business conditions, and the expected rate of increase in wages/salaries.

The BOJ said that the responses assist it in charting future policy decisions.

Source:
BY AVIA COLLINDER
collindera@jamaiaobserver.com
Business reporter
Jamaica Observer
Wednesday September 21, 2016

http://www.jamaicaobserver.com/business/Inflation-survey-shows-dip-in-CEO-confidence_74677