Business and consumer confidence goes up

There has been an improvement in business and consumer confidence for the third quarter of the year.

The improvement in both indices means that both consumers and businesses are feeling optimistic their financial prospects will get better.

Data released today indicate that the index of business confidence was 106.3 points, up from 91.8 points in the second quarter and 95.8 in the corresponding period last year.

Meanwhile, consumer confidence rose to 118.2 points from 111 points in the previous quarter and 104.2 in last year’s third quarter.

The increase in the consumer index is the highest since 2008.

The report on the indices said businesses expressed optimism about the future prospects for Jamaica’s economy and an improved outlook in their financial position.

And the level of confidence was attributable to consumers’ expected gains in the national economy as well as their own financial situations, rather than in how they assessed current conditions.

The report highlighted more businesses saw better returns on investments than was expected and that more firms expect increase profits.

The number of businesses which expect conditions in the national economy to worsen also fell.

On the consumer side, the survey showed that more Jamaicans anticipated gains in their income than at any time since 2008, with the sole exception of what the report says was an unrealistic surge at the start of 2012.

Twenty eight per cent of consumers indicated vacation plans, which is just above last quarter’s 26 per cent.

Vehicle buying plans remained flat at 15 per cent while home buying plans increased slightly to 11 per cent from nine per cent in the previous quarter.

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