Consumer Confidence Rises But Businesses Less Optimistic About Profits Improving

• During the fourth quarter of 2023, Jamaica's Consumer Confidence Index hit 174.7 points, the highest level since 2019 and an 8.5% gain over the previous quarter.
• Don Anderson, CEO of Market Research Services, highlighted that the spike in the consumer confidence index indicates that consumers are perceiving a return to pre-pandemic conditions, with significant changes in business and work conditions expected over the next year.
• In contrast, local businesses appear to be less optimistic about their profits improving in 2024. The Index of Business Confidence reported a decrease between Q3 and Q4 from 144.7 points to 139.1 points, reflecting a change of -3.9%. This change is due to declines in firms’ financial standing and profit performance between quarters.
• Similarly, the index of business conditions, which constitutes thoughts about the climate for investment/expansion, as well as the performance in the firms’ profitability, remained relatively stable in Q4. The proportion of firms that are convinced it is a good time to invest dipped to 53% in Q4, down from 57%. The proportion of firms that reported that profits are better than expected was stable at 26% compared to 25% in Q3. Compared to Q4 2022, the index of current business conditions recorded a small negative change of -1.6%.
• Despite different confidence trends, businesses and consumers remain concerned about crime and violence, which they see as a substantial obstacle to Jamaica's prosperity.

(Source:  Jamaica Conference Board)