Aug 07, 2012
Business confidence hits 12-year lowBack
Africa|Africa|South Africa|SACCI Business Confidence|Sacci
© Reuse this
The Sacci Business Confidence Index (BCI) declined by four index points to 90.9 in July, after bouncing back by 2.1 points from the 92.8 in May to 94.9 in June. The July reading is down more than eight points on a year ago.
Sacci stated that the latest move in the BCI indicated that business confidence remained highly fragile and unpredictable.
“The short-term monthly improvements in June 2012 were to a large extent reversed in July 2012 with four of the seven sub-indices for the real economy being less favourable than in June. Where eight of the thirteen sub-indices of the BCI were positive on a monthly basis in June, only three sub-indices were positive in July 2012 with four indices being neutral. The majority of the sub-indices in the financial environment were neutral while the sub-indices in the real economy were largely negative on a month-on-month basis,” the index stated.
On a yearly basis, seven of the thirteen sub-indices improved in July 2012 and one remained unchanged. This is better than in June 2012 when five sub-indices made a positive contribution to the BCI.
Sacci said that the growth slowdown globally and locally would impact on trade and the current account of the balance of payments. “Given the uncertain outlook for international trade, a growing trade deficit may have further adverse economic consequences. Foreign trade remains a key contributor in supporting and nurturing local business confidence,” it concluded.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Economy News
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...