Report: Business Leaders ‘Cautiously Optimistic’
The mid-year 2015 Business Confidence Index Report has been released, with the overall benchmark of business leaders’ assessment of economic conditions increasing to 105.5.
A Total Research Associates spokesperson said, “The HSBC Business Confidence Index, representing an overall benchmark of business leaders’ assessment of economic conditions at the present time and in the future, has increased to 105.5 from its inaugural score of 100 established in 2014.
“At the same time, consumer confidence in Bermuda is at its highest point for the past eight years, sitting at 97.2 after the second quarter of 2015.
“Business leaders believe that the economy has improved over the past twelve months, and that it will continue to grow over the next twelve months.
“Despite this optimism, company leaders show greater optimism in the Country’s financial situation than with their own business’ state of affairs. Indeed, Bermuda’s future economic direction is now largely embraced by business leaders who believe that the Country’s economy will improve in the short-term.
“At the same time, business leaders remain cautiously optimistic about the financial well-being of their own organisation over the next year, anticipating that capital expenditures and revenues will either increase or remain the same.
“Capital expenditures are expected to increase by about 26 percent on average over the next twelve months among those able to provide an estimation.
“Despite perceptions having marginally improved compared to one year ago, the cost of doing business remains a key concern, and this year, there is a greater level of apprehension with respect to Bermuda’s governance.
“To improve the business climate, there is a desire for enhanced political stability and government leadership. In addition, a more concerted national effort on economic growth, through business development and increased foreign investments, is needed.
“Business leaders continue to bear responsibility to change the Country’s economic situation, with many having frozen salaries or wages, leaving vacant positions unfilled or conducting internal restructuring or staff transfers as workforce-related means to address the current state of the economy.
“Despite these measures, the data suggests that the job market in the private sector is stabilising, with early signs of improvement in employment levels beginning to be apparent.
“This suggests that the economy may have bottomed out and is now beginning the slow process of re-building for the first time since the 2008 global financial crisis.”
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Methodology:
“This survey represents the second iteration of the study which was first commissioned in 2014,” Total Research Associates said
“Sponsored by HSBC, the Bermuda Business Confidence Index is conducted online with members of an exclusive panel of Bermuda’s senior executives, with representation of both international and domestic companies from all major sectors of the economy including communications, transportation, retail, tourism, professional services, and finance, among others.
“A total of 398 individuals were sent an invitation to take part from HSBC’s CEO directly. Among them, 98 surveys were completed, representing a response rate of 25 percent. The online survey was conducted between June 16th and July 26th, 2015. The average time required to complete the survey was approximately 17 minutes.”
“At the same time, consumer confidence in Bermuda is at its highest point for the past eight years, sitting at 97.2 after the second quarter of 2015.
“Business leaders believe that the economy has improved over the past twelve months, and that it will continue to grow over the next twelve months.