Jan 13, 2009
Business confidence will only improve in late 2009 – SacciBack
© Reuse this
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© Reuse this Comment Guidelines (150 word limit)
Creamer Media Senior Researcher and Deputy Editor Online
Updated 8 minutes ago The Barclays Purchasing Managers’ Index (PMI) has dropped to its lowest level since 2009, with all major subcomponents below the neutral 50-point mark during November. The seasonally adjusted PMI plunged from 48.1 index points in October to 43.3 in November.
Updated 24 minutes ago Power utility Eskom has expressed concern over reports about the possible closure of Arnot coal mine and the job losses that would inevitably follow such a move, as well as anger with what it termed the leaking of confidential information. "Eskom is deeply concerned...
Updated 28 minutes ago Zambia expects to clinch $1-billion in Chinese investment and loans at this week's China-Africa summit in Johannesburg, a presidential spokesperson said on Tuesday. Presidential spokesperson Amos Chanda said Zambia was expected to conclude deals with China in...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
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,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...