Over 60 percent of the companies expect their revenues to grow with 14.28 percent, expecting a significant growth. The advance is sustained by internal market, rather than exports, Foreign Investors Council (FIC) shows, according to a press release, after developing its business sentiment index to bring its members assessment of their expectations of results of operations and growth expectations, capital investment outlook for the coming year a.s.o.
These data are aligned with the responses from December 2013, when growth expectations were of 51.5 percent and a low number of respondents (3.85 percent) was expecting a significant increase of revenues.
This also compares slightly better than June 2014 expectations. Similarly, compared to June 30, 2014, the number of respondents expecting contraction in their revenues decreased from 20 percent to 8.57 percent in December 31, 2014.
However, this remains slightly higher than the expectation of December 31, 2013 of 6 percent. Companies that felt their business will remain unchanged this year, has gone down from 39.3 percent in December 30, 2013 to 28.5 percent. However it is still higher compared to June 30, 2014 of 19.2 percent.
One of the major changes in terms of companies’ responses is to increase the growth of internal market. The expectations on contraction have diminished quite significantly from a year ago and the number of respondents expecting contraction is at 8.65 percent.
Despite higher confidence in earnings growth and results, respondents do not see any much change in capital investment area, which remain at the same level – 46.15 percent, compared with 48 percent in 2013, while 28.2 percent forecast a growth of capital investments compared to 24.14 percent in 2013 and 23.07 percent shows that they will invest less compared to the previous year.
Finally, investors have not planned any major changes regarding workforce, 53.84 percent respondents expecting an increase in the number of employees compared to 55.5 percent in the previous year. However, 28.2 percent is now planning a small increase, compared to 24 percent in prior period.