Advertise with fastmoving.co.za
 
 

Sacci says the flattening momentum in business confidence must be addressed to nurture investor confidence.
Sacci says the flattening momentum in business confidence must be addressed to nurture investor confidence.

Business confidence remains flat

ECONOMIC NEWS

By Sunita Menon - Dec 6th, 13:28

Business confidence remained flat in November. 

The South African Chamber of Commerce and Industry (Sacci) business confidence index (BCI) increased by 0.3 of an index point to 96.1. This is one point higher than in November 2017.

“The flattening of momentum in business confidence must be addressed in order to create a situation where investor confidence could be nurtured,” said Sacci in a statement.

“The upward momentum of the BCI since September 2018 appears to have flattened and it is the second time this year that the business climate hesitated after encouraging steps to develop and enhanced business confidence.”

In November 2018, three sub-indices were positive month on month, while three were unchanged and seven saw declines.

The marginal increase was supported by improvements in merchandise export and import volumes, the real value of building plans passed and manufacturing output. However, the all share price index of the JSE, higher inflation, lower precious metal prices and stagnant real retail sales weighed on confidence.

“SA’s economy continues to face various limitations due to inadequate growth, growing public debt, capital outflows, world trade tensions, fiscal constraints and several sociopolitical challenges that prevent optimal economic performance,” Sacci warned.

This comes after the GDP figures released by Stats SA confirmed that SA had exited a recession in the third quarter of the year. Growth, however, still remains low, with the Reserve Bank expecting growth of 0.6% for the year and the National Treasury expecting 0.7%.

The RMB/BER business confidence index showed that business remained gloomy in the fourth quarter. The quarterly business confidence index fell to 31 points during the fourth quarter of 2018 from 34 points in the third quarter.
Business Live 

Related News

SA grocery retailers hoping for a merry festive season
06/12/2018 - 08:18
Grocery retailers have had a tough year, and like other retailers are hoping to see a boost in sales over the festive season.

SA out of recession with 2.2% GDP growth
05/12/2018 - 16:42
The SA economy has officially exited the recession after reporting 2.2% GDP growth for the third quarter of the year, Stats SA announced.

New age consumerism and the consumer power-shift
05/12/2018 - 10:37
Advances in telecommunication technology have transformed the tools used for marketing and consumerism and ultimately, the way that businesses operate. The Statista 2017 Report indicated that the number of smartphone users in the United States is estimated to have reached 224.3 million, with smartphone users worldwide exceeding 2 billion. Undoubtedly, we are running headlong into the end of the industrial era of consumption and into a consumer power-shift.

Driving mobile and card acceptance among informal retailers holds the key to scaling cashless payments in SA
05/12/2018 - 09:57
Despite the majority (77 percent) of adult South Africans owning bank accounts, more than half of the total value of all consumer transactions in the country are still conducted in cash. This suggests that being formally banked may not be enough of an incentive for consumers to move away from cash. Accelerating the pace of migration from cash to digital and card payments must be a priority for catalysing economic growth.

Agriculture confidence drops to lowest level in nine years
04/12/2018 - 13:19
Confidence in the agricultural sector has fallen to the lowest level in nine years on the back of uncertainty around land reform.