SA business confidence index lifted by optimism on better conditions – Sacci
Business confidence in South Africa was up slightly in November, reflecting an anticipation of more conducive economic conditions, a survey showed on Wednesday.
The South African Chamber of Commerce and Industry (Sacci) said its monthly business confidence index rose to 95.1 in November from 92.9 in October.
South African businesses had taken heart from the fact that the country still had an investment grade sovereign credit rating from Moody's, despite falling into "junk" status with its peers S&P Global and Fitch, Sacci said.
In its most recent review, S&P downgraded South Africa's foreign currency debt to the second notch (BB) below investment grade, and local currency debt to the first notch below investment grade BB+, while Fitch left the rating of local and foreign currency debt unchanged at BB+.
Moody's however offered the country a reprieve, keeping its local and foreign currency debt at Baa3, the lowest investment grade.
"The breather afforded South Africa by Moody’s ... leave time for implementing measures (political and policy-wise) that would alleviate fiscal pressures and enhance economic performance," Sacci said. "The budget of 2018/19 in February 2018 will have to bear this out."
Ratings agencies have highlighted concerns over the direction of economic policy in South Africa as the government grapples with allegations of corruption swirling around senior officials including President Jacob Zuma.
Zuma denies using his political influence for his personal financial benefit.
Investors and analysts hope that the ruling African National Congress's conference this month will signal a shift onto a more viable economic policy path as the party braces for a stiff challenge at 2019 general elections.
"Public finance matters and economic growth prospects are important phenomena that have to be attended to urgently," Sacci said.
It said business sentiment had also been lifted in November by recent data from the revenue service pointing to a positive national trade balance.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation