BUSINESS and consumer confidence in Jamaica continued on its upward trajectory to hit index points of 151.3 and 177.5 for the first quarter of 2019.

The confidence level of businesses for quarter one of 2019 showed increased optimism over the similar quarter of 2018, which dipped to an index point 136.5 from 142.6 in the fourth quarter of 2017.

According to the Survey of Business Confidence Summary Report, firms are of the idea that economic growth increased but not significantly, while a slightly greater number of firms expect the economy to improve over the next 12 months.

“While not significantly different from the proportion reported in the last quarter of 2018, it is worth noting that it is the highest in the history of these surveys. This level of confidence in the economy has also resulted in an increase in the index to 157 points – also the highest in the history of the surveys,” pollster Don Anderson said during the release of the findings.

Firms’ willingness to invest in new plant and equipment soared to its highest in the history of the survey, at 159 points. Over 70 per cent of firms continued to agree that the time is right for expansion, while more than half the firms surveyed indicated having solid plans to increase the level of capital investment in their firms over the next 12 months.

Still, crime and its associated costs continue to hold the top spot as the main barrier to investment for quarter one of 2019.

Despite the increased optimism, firms are not as hopeful about financial gains and profits, with 74 per cent expecting gains within the upcoming year, down from 78 per cent.

There was also a reduction in the percentage of firms anticipating improvements in company profitability, which amounted to 69 per cent, down from 71 per cent.

“The main reason for these views is the confidence in the internal strategies and plans that will be established in the year ahead,” Anderson said.

The business community also anticipated that the Government would not announce any changes in taxes in its budget for the next fiscal year.

ANOTHER RECORD IN CONSUMER CONFIDENCE

Consumer confidence strengthened in the first quarter of 2019 to 177.5 points compared to 175.5 points in the fourth quarter of 2017, representing another record in this index.

“Consumers’ expectations for and observation of jobs is at the heart of confidence (30 per cent). Consumers’ confidence is also driven by their views of the Government initiatives (21 per cent) as well as their observation of the infrastructural changes they see around (21 per cent),” the report said.

Despite the increased confidence, expectations for income gains, current and future economic conditions remained stable. The current job index dipped marginally to 54 points from 55 points in the first quarter of 2019.

“This represents the first time in nine quarters that a dip has been reported in this indeed. Job outlook also dipped by 1 index point from 123 to 122, the first time in four quarters,” Anderson reasoned.

The majority of consumers do not anticipate purchasing a home, car or taking a vacation in the year ahead. However, among those who anticipate doing so this is most likely to be a vacation. Nearly all intend to finance it from their personal savings.