Jan 13, 2009
Business confidence will only improve in late 2009 – SacciBack
Sacci's Business Confidence Index (BCI) for December had dropped to 83,8 points, which was the lowest figure for 2008. Business confidence was also at levels last seen in 2003.
Downing commented that the BCI had shown a brief improvement of 2,5 points to 86,7 points in November, before showing a "steeper-than-expected" drop.
He noted that seven of the 13 indices of the BCI had made positive contributions to the index, while one had remained neutral.
The manufacturing, exports, imports, construction of buildings and the rand exchange rate indices had, however, made negative contributions.
Further, he said that the indices that had made positive contributions had only shown low levels of improvement.
The economist expected the majority of the indices to move sideways in 2009, although some could show slight improvements.
Sacci said in a statement that constrained household expenditure, the balance of payments imbalances, the need for continued net financial inflows, lower inflation and commodity prices, limited available fiscal options and restrained economic activity, to be of concern to business in the year ahead.
Meanwhile, Downing asserted that the largest contributors to the decline in business confidence in 2008 had been the cyclical downturn experienced by all economies at some point, the US subprime crisis, which had lead to a financial banking, and eventually a credit crisis, and the electricity constraints in South Africa.
He noted that the electricity constraints could also constrain economic growth in the country for some time.
Sacci's BCI for December had declined to 84,9 points in the fourth quarter of 2008, compared with 91,1 points in the third quarter of the year. This was also a decline from the 95,8 points registered in the fourth quarter of 2007.
Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Updated 4 hours ago A new World Bank report warns that some regions of the world, including parts of Africa, could see their growth rates decline by as much as 6% by 2050 as a result of water-related losses, with water scarcity also exacerbated by climate change. Titled ‘High and Dry:...
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...