Jul 11, 2012
Business confidence improves marginallyBack
© Reuse this
The BCI improved by 2.1 points from the ten-year low of 92.8 in May to 94.9 in June, but remained 7.5 points below the June 2011 level.
In the first half of 2011, the BCI averaged 102.6, although this average weakened to 98.3 in the second half of 2011 and to 95.7 in the first half of 2012.
“Although business confidence has strayed from its downward trend originating in March 2012, the promotion of a domestic environment that is nurturing to the supply side of the economy could provide a more lasting directional change in business confidence,” Sacci stated.
It said that market-driven private sector fixed investment from both local and foreign investors remained vital and that policy development should especially nuture foreign investors that had already ventured into the South African economy.
The BCI decline in May was followed by notable improvements in the subindices in June, Sacci stated. While only two of the thirteen subindices of the BCI were positive on a month-on-month basis in May, eight subindices turned positive with one remaining unchanged in June. The majority of the subindices in both the financial and real-economy divisions of the BCI were positive in June.
The year-on-year comparisons of the subindices was less convincing where five of the thirteen subindices improved in June 2012 and one remained unchanged. The financial environment was less supportive of a positive business mood than a year ago while there were signs that the real-economy environment might have consolidated.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Economy News
Updated 23 minutes ago With Africa’s population set to triple by 2050, modernising local economies will be vital to make the continent more competitive and to increase people’s living standards, the African Economic Outlook 2015 report highlights. Compiled by the African Development Bank...
Article contains comments
Updated 22 minutes ago With Africa’s population set to triple by 2050, modernising local economies will be vital to make the continent more competitive and to increase people’s living standards, the African Economic Outlook 2015 report highlights. Compiled by the African Development Bank...
Updated 45 minutes ago Diversified feeds and poultry company Quantum Foods lifted its headline earnings a share for the six months to March 31, by 182% to 26.3c, compared with headline earnings a share of 9.3c in the six months to March 2014. Quantum further reported profit a share of...
Updated 56 minutes ago South Africa and the US have agreed to facilitate deliberations between the South African Poultry Association (Sapa) and the US Poultry and Egg Export Council towards finalising discussions on market access for US chicken bone-in cuts into South Africa. The meeting,...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...