Aug 07, 2012
Business confidence hits 12-year lowBack
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
Other Economy News
Article contains comments
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 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.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Mitsubishi Motors South Africa (MMSA) has introduced a 4x2 derivative of its Pajero Sport sports-utility vehicle (SUV), which will give it access to a substantial slice of the full-size SUV market, where it will compete with the likes of the Ford Everest, Chevrolet...
South African Energy Minister Ben Martins has affirmed that the government wants the country to be globally competitive in the nuclear sector. "Our responsibility has always been ... to ensure that, in nuclear energy, South Africa can compete with the rest of the...
Mercedes-Benz South Africa (MBSA) president and CEO Dr Martin Zimmermann describes the new S-Class as “a special place to be”, with the car creating a sense of “wellness” once you are seated inside the German brand’s flagship model. It is difficult to argue...
Water scarcity and water-quality issues are broadly recognised and understood in most political, business and civil organisations in South Africa, but solving water issues will require wide and continuous action in catchments and municipalities by organisations and...
Work is well under way on the R212-million Imvutshane dam, 30 km north-west of Stanger, in KwaZulu-Natal, which is a key link in supplying people in rural Maphumulo with a reliable source of safe drinking water.