BURNING ISSUES

POWER TRUMPS LIVING COSTS 

Energy tariffs propel utility costs to the forefront of business concerns 

A surprise contender tops the list of business concerns in July, displacing the usual frontrunners of inflation and the cost of living. Utility costs emerges as the leading issue confronting corporates, cited by four in 10 (40%) of surveyed executives – an increase of 14 percentage points from June (26%). 

This follows the government’s 18 percent electricity tariff hike, introduced to manage costs in the energy sector.  

In the latest LMD-PEPPERCUBE Business Confidence Index (BCI) survey, inflation slips to second place with 37 percent of executives identifying it as a major concern. This represents a notable decline of 15 percentage points from the previous month (52%).

And high taxes, which dominated the rankings for several months, falls to third place. A third of respondents (33%) express concern over taxation – down eight percentage points from June (41%).  

Meanwhile, fuel shortages and interest rates share fourth place with slightly over a quarter (27%) of respondents citing them as a concern. 

On a national scale, the cost of living overtakes the economy to emerge as the country’s most pressing issue with seven in 10 (70%) respondents identifying it as a challenge – an increase of two points from June (68%). 

The economy ranks second (it was cited by two-thirds of poll participants), reflecting a four percentage point decline from 70 percent in the month prior. 

And climate change occupies third place with just over a quarter (26%) of respondents saying so. Brain drain follows in fourth place, cited by 12 percent, while the lack of essentials rounds out the top five with 10 percent saying it is a concern. 

– LMD