TOP managers in Jamaica continued to improve their perception of how well their businesses are doing towards the end of 2011.

They also remained optimistic about how well their businesses will do over the year ahead.

According to the Bank of Jamaica’s (BOJ’s) most recent inflation expectations survey, the perception of present business conditions during the period November to December 2011 showed an increase compared with the months leading up to September 2011.

Top brass have been growing steadily more positive about the present state of their businesses since July 2009, when their views were at a low ebb.

There was an up-tick in the perception of future business conditions during the review period when compared with the outcome of the previous survey done in August to September, but it reflected levels of optimism maintained since June 2010.

“This suggests that perceptions had stabilised since the March 2010 survey,” said the BOJ’s report. “In general, the perceptions of present and future business conditions were favourable”.

Most respondents to the survey indicated that they expected the largest increase in operating expenses over the 12 months following the survey to be associated with the cost of utilities — 41.6 per cent picked utilities to have the highest price increases.

This was followed by the cost of fuel and transportation (identified by 26.4 per cent as the main driver of increases in their costs of production) and then stock replacement (15.5 per cent).

That aside, the public’s perception of the Government’s ability to control inflation has improved steadily since the March 2011 survey and, for the first time since the start of the survey (in December 2005), the proportion of satisfied respondents surpassed those that are dissatisfied.

Last week, the BOJ’s governor, Brian Wynter, said that the responses of the survey were encouraging as the central bank gradually moves towards an inflation targeting framework.

The inflation expectations surveys are undertaken quarterly by the Statistical Institute of Jamaica on the BOJ’s behalf. CEOs, managing directors, financial controllers are asked about the future movement of prices, current and future business conditions and expected rate of increase in wages and salaries. The most recent survey conducted between November and December 2011 had 296 respondents.