Investment, employment continue to look gloomy, says UWI/IOB Corporate Confidence Monitor

Businessmen continue to have confidence in the financial outlook of their organisations, but feel the employment and investment outlook for both the 6-month and 12-month horizon will continue  to deteriorate. This, according to the Corporate Confidence Monitor (CCM) done by UWI’s  Institute of Business for the third quarter 2003.  The CCM was disseminated to over 200 business leaders and executives during the first two weeks in September. All other components of the CCM improved, except the projection for the local economy that is expected to remain at 55 Index points for the next 6 months while the outlook for the local economy is expected to have the most positive movement of 18 Index points (from 65 to 83 Index points) over the 12-month horizon. Executives continue to be optimistic about the local economy. Eighty percent (80%) of executives in the finance, real estate and insurance sector and (88%) percent of the manufacturing sector have positive outlooks for the local economy.

The prospects for the 12-month period are expected to be more promising, particularly in the finance (90%); manufacturing (100%); and construction and quarrying sectors (98%).
On the other hand, executives are less optimistic about the global economy. 
Fifty percent of the Manufacturing as well as (70%) percent of the Finance sector and  (100%) percent of the Construction sector do not anticipate any improvements in the global economy for the next six months. However, it is anticipated that the global economy would improve in the coming 12 months. Business leaders in the manufacturing (63%) and the Energy and energy related industries (71%) do not foresee any major movements in employment levels in their organisations for the next 12 months. Investments in the key business sectors are not expected to deviate from its current levels over the coming 6-months and 12-months.

Eighty-six percent (86%) of the participating executives from the Energy sector indicated that their organisations would not be making major capital investments while seventy percent (70%) and sixty-seven percent (67%) of the finance, real estate and insurance sector; and the construction sector respectively do not intend to engage in capital investments in the near future. The investment outlook for the 12-month horizon will continue to be gloomy.