R/€ = 15.33Change: 0.10
R/$ = 13.64Change: 0.11
Au 1149.50 $/ozChange: 14.74
Pt 941.00 $/ozChange: 30.50
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Aug 07, 2014

Business confidence at 15-year low in July

Photo: Bloomberg
Africa|Building|Africa|South Africa|Manufacturing|Manufacturing Output|Precious Metal Prices
© Reuse this

After picking up marginally in June to 89.7 from 88.9 in May, the South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) declined to 87.9 in July – its lowest level since the 86.9 recorded in September 1999.

On a month-on-month basis, five of the thirteen BCI subindices, including manufacturing output, import volumes and building activity made a negative contribution to the index, compared with eight in June.

The level of business confidence was now 2.8 index points lower than that of a year ago as the negative yearly changes in the BCI subindices gained momentum.

Ten of the thirteen BCI subindices made a negative year-on-year contribution to the index in July, while international developments were responsible for the positive contributions made by share and precious metal prices in the context of a staid domestic economic atmosphere.

Despite low business confidence, Sacci said it welcomed the balance being tilted towards a more positive outlook for the world economy for the rest of the year.

“An improved European recovery and affirmation of South Africa’s African Growth and Opportunity Act status could positively influence trade to and from South Africa,” it stated.

The chamber was, meanwhile, concerned about the employment outlook and the impact that declining employment would have on income inequality and possible increases in the Gini-coefficient.

This was expected to further negatively affect the real disposable income of households and their expenditure potential, which was already under pressure.

“Rising unemployment is one of the immediate consequences of high wage demands supported through strike activity. The secondary economic consequences will surface more starkly in the medium term.

“With the consumer playing a diminishing role in the domestic economy, related measures of business confidence will likely be drawn lower,” it cautioned.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Latest News
Updated 3 minutes ago The National Union of Metalworkers of South Africa (Numsa) on Tuesday called on the National Treasury to investigate the noncompliance of the Preferential Procurement Policy Framework Act and its local content regulation as part of its list of demands ahead of its...
Updated 7 minutes ago An economic-impact assessment undertaken by the South African Chamber of Commerce and Industry (Sacci) has laid bare the alarming potential knock-on effects of proposed changes to legislation governing the foreign ownership of private security firms in South Africa,...
Ivan Glasenberg
Updated 11 minutes ago Diversified mining and marketing company Glencore on Tuesday released a funding fact sheet that showed enhanced liquidity, a plethora of undrawn credit facilities and a business that is pumping free cash. Giving chapter and verse of its financing arrangements, the...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Sphere Holdings CEO Itumeleng Kgaboesele
Updated 5 hours ago Black-owned investment holding company Sphere Holdings plans to raise a further R1-billion in the coming months in support of its strategy to become a leading black industrial enterprise, which could ultimately seek a listing on the JSE.
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme.   LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96