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 2018, 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

Is Woolworths unravelling in Australia?
15/02/2019 - 16:35
The sudden departure of two Australia-based nonexecutive directors of Woolworths has fuelled speculation that the troubled retailer will be forced to announce another huge write-down related to the R21bn acquisition of the David Jones department store.

Booze, drugs and DIY boost Spar in difficult economy
13/02/2019 - 15:40
Robust liquor sales and the inclusion of the pharmaceutical distribution business it bought in 2018 year boosted grocery retailer Spar Group in the weeks leading up to Christmas.

Pick n Pay trials a R5 reusable bag – made from green plastic bottles
13/02/2019 - 13:38
Pick n Pay is trialling the lowest priced reusable bag yet in South Africa, as an affordable reusable alternative to plastic carrier bags.

IoT offers fast, effective control of every business resource
12/02/2019 - 22:51
Internet of Things (IoT) continues to make inroads into South African industries, and it is not difficult to see why. The fact is that with IoT, businesses will always know where everything is, they will be able to keep track of even more data, everything will be faster and remote work will be even more feasible. Another fact is that challenges associated with this technology, like security, connectivity and a sound business plan, are largely being addressed.

Toys R Us makes a comeback as Tru Kids Brands
12/02/2019 - 19:17
Toys R Us is making a comeback as a brand new company known as Tru Kids Brands, one year after the toy retailer went bust.