BY KARENA BENNETT Business reporter bennettk@jamaicaobserver.com Wednesday, July 15, 2015

Anderson…consumers have found some means of fighting through the harsh economic conditions. (PHOTO: ASTON SPAULDING)

BUSINESS and consumer confidence for the second quarter remained stable and strong compared to last quarter, and well above the levels of last year.

The Jamaica Chamber of Commerce yesterday reported that while many firms have voiced optimism during the past nine months over any comparable time period in the last decade, current expectations are that the process of fully re-establishing the economy on a sound footing will take a long time.

Despite the stabilisation of confidence in the general economic policies of the government, the JCC reported that many firms registered complaints about various components of the policies.

“At present, the best possible outcome, despite small quarter-to-quarter variations, is that confidence is maintained near peak levels. The government’s steadfast commitment to the new policy is essential to dispel any lingering uncertainty about its implementation,” stated the report of the survey conducted by Market Research Services headed by pollster Don Anderson.

The business confidence index was at 128.2 in the second quarter of the 2015 survey, just below the 131.9 in the first quarter but well above 112.8 recorded in the comparable period last year. Expectations that the firms’ financial health could improve in 2016 dipped 10 per cent below an all-time record of 74 per cent in the first quarter, but above the 62 per cent in the comparable quarter last year.

The report also stated that there was a decline in future prospects for investing, with 62 per cent stating that it was a good time to expand their productive capacity to take advantage of future economic opportunities, slightly below the all-time peak of 65 per cent set in the fourth quarter of 2014.

Concurrently, 68 per cent of firms reported that their profits were higher or the same as they had previously anticipated, an increase of nine per cent over the comparable quarter last year and one per cent lower than the 69 per cent recorded in the first quarter of this year.

“Indeed, there were the best consecutive quarters for firms’ assessments of current profits since 2008. Just nine per cent anticipated their profits would be lower during the year ahead, the lowest percentage in more than three years,” the report stated.

Consumer confidence

Consumer confidence remained unchanged at improved levels, according to the JCC report. Confidence was 114 in the second quarter of 2015, nearly equal to the 114.3 in the prior quarter and well above last year’s 100.8.

“Looking anecdotally at the data it implies that consumers have found some means of fighting through the harsh economic conditions in the expectation of reaping what they anticipate to be more concrete long-term benefits, and I say that against the background of the ongoing difficulties which have been experienced in finalising negotiations for the public sector,” Anderson stated.

http://www.jamaicaobserver.com/business/Business-and-consumer-confidence-remain-strong_19218785