Chamber Survey Says Business Confidence ‘Appears To Be On The Rise’

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The results of the Chambers’ Business Performance Survey have been tabulated. Many of the findings will not surprise the business community who are on the frontline of economic activity.

Ever since the reopening of the economy after Covid-19 lockdowns, there has been a general uptick in economic activity as the economy seeks to return to a pre covid-19 level sooner rather than later.

Business confidence appears to be on the rise with 66% of respondents forecasting increased turnover over the next twelve months while 71% of respondents forecast an increase in business profitability over the same period while only 29% report worsened cash flow relative to the previous quarter (January- March,2022).

This optimism is however tempered by 78% of respondents forecasting an increase in prices of their goods or services over the next quarter, with 59% of respondents reporting an increase in prices over the previous quarter.

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There is clearly a threat of inflation which can derail, the expansion in consumption and economic activity that can lead to job creation.

Global issues appear to be conspiring against the St. Lucian Economies recovery. 61% of respondents face pressure to raise prices from the purchase price of goods, 59% from fuel,
59% from utilities and 41% from labour costs.

With operating costs increasing firms have had little option but to pass on these increased costs in the form of higher prices to consumers.

The global inflationary pressures are affecting business across the board and are forcing them to pass on these price increases to customers as fast as they come. Managing this phenomenon will continue to be ticklish.

Policy interventions, once again, must try and serve many masters (unemployment, social support, economic growth, and inflation).

Post Covid-19 economic recovery will continue to pose serious challenges for both Government and Businesses for some time.

With limited policy tools at its disposal, Government will have to find a way to balance its various priorities without unravelling the critical pistons of the society and economy.

Source: Saint Lucia Chamber of Commerce, Industry and Agriculture. Headline photo: Stock image.

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Editorial Staff
Editorial Staff
Our Editorial Staff at St. Lucia Times is a team publishing news and other articles to over 200,000 regular monthly readers in Saint Lucia and in over 150 other countries worldwide.

5 COMMENTS

  1. I dare all of you to walk through some streets of Castries (dying city) at noon…so many businesses are there catching dust and empty. Some have sinced started operating online to rid themselves off aging stock.

    Stop painting false pictures for us. Many of our youths have sinced started hustling off shein which has replaced the need for clothing stores which occupied most of Castries.

    • Above all you said some or a particular store always deposit millions of sale daily and the common man is subject to anti money laundering act. The banks are riddle with hypocrites who just show there faces and ask me I will name them publically

  2. I can see why business confidence appears to be on the rise! Businesses are salivating at the prospect that “with operating costs increasing firms have had little option but to pass on these increased costs in the form of higher prices to consumers.”

    They are happy in the security that they will not be affected economically; after all, their profits will remain unchanged, or even increase.

    If a product costs $50.00, and is sold for $100.00, profit will be $50.00. If the product’s cost doubles to $100.00, then it will be sold for $200.00 – profit will be $100.00!

    So it seems that the glee (they call it “rising business confidence”) with which businesses are welcoming increasing costs of doing business, is well founded. That’s why they are not surprised by the findings of the Chamber’s Performance Survey.

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