Jamaica’s business optimism surges

New units built at Montego Freeport in 2015.

New units built at Montego Freeport in 2015.

Bank of Jamaica (BOJ) is reporting a surge in perceptions of present and future business conditions in Jamaica over December last year, as seen by business executives.
Present business conditions reached its second highest level in February when measured by the index of present business conditions, since the record high of 240.2 in the September 2007 survey, Bank of Jamaica reported.
The index of present business conditions increased to 224.9 from 190.4 in the December 2015 survey. The out turn compares with a low of 47.50 reached in April 2013 and in March 2010 the lowest level of 40. The index has a base of 100 in December 2005.
The executives have a heightened picture of the future as the index of future business conditions also climbed reaching 172.1 from 158.2 in the previous survey. Grph BCon 02-16The improvement in both indices reflected increases in the number of respondents of the view that conditions were or will be “better” while there were declines in the number of respondents indicating that conditions were “worse” the BOJ report stated. The recent improvement is reflective of a gradual improvement since the latter half of 2013 and it been on the increase since with the occasional slip as occurred in July 2015.
The chart shows that the perception of future business conditions is more stable than short term current conditions view. The data shows in the latter part of 2015, for the first second time since the commencement of the survey, the present business conditions have moved well ahead of future conditions.

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