The July 2020 Business Expectations Survey Report of the CBN has shown that firms are pessimistic on the macro economy growth prospects for July 2020, with a -7.9 index point overall Confidence Index (CI).
“However, respondents are optimistic in their outlook for August with a confidence index of 33.7. Furthermore, they expressed optimism in the overall business outlook in September, 2020 and January 2021 as shown in a greater confidence of the economy, at 45.5 and 62.4 index points,” the report released yesterday said.
The July 2020 Business Expectations Survey was conducted from July 13 to17 with a sample size of 1,050 businesses nationwide. A response rate of 95.9 percent was achieved, and the sample covered the agriculture/services, manufacturing, wholesale/retail trade, and construction sectors.
The respondent firms were made up of small, medium and large corporations covering both import oriented and export-oriented businesses, it noted.
The report also showed that respondents’ outlook on the volume of total order, financial conditions (working capital), access to credit remained negative while their outlook on average capacity utilization and volume of business activity is positive.
Banes of businesses were identified to include poor electricity, competition, harsh economy, high interest rate, among others.
The firms also expect the Naira to depreciate now but appreciate in August, in two and in six months. Inflation level could rise in six and 12 months, while borrowing rate could rise now up to the next six months, the report stated.