JN Fund Managers’ Daily Market Update -January 23, 2020
The Jamaica Chamber of Commerce (JCC) business confidence index declined during the fourth quarter of 2019, the third consecutive quarterly decline for the year. The busi-ness confidence index fell to 133 points during the fourth quarter from the 141 points recorded in the previous quarter. This decline in business confidence is reflective of the fluctuations in the Jamaican dollar vis-a-vis the US dollar and the high level of crime and violence in society. Consumer confidence, however, which remained stable at approxi-mately 180 points was influenced by the declining trend in the unemployment rate, the availability of jobs in the construction, tourism and business processing outsourcing sec-tors and expectations for income growth.
Despite the recent declines in business confidence, we believe that both consumer and business confidence remain at strong levels. Given the overall improvement in Jamaica’s economic environment, we believe that Jamaica is on the right trajectory for growth. However, risks such as crime and the gradual slowing in global growth will continue to weigh on the pace of the growth in 2020.