Jul 26, 2012
Western Cape confidence higher than rest of SABack
Africa|Building|Building Contractors|First National Bank|Africa|South Africa|Manufacturing|Manufacturing Confidence|Product|Retail Confidence|Wholesale And Manufacturing Confidence|Western Cape|South
© Reuse this
The second-quarter economic report on the Western Cape economy, commissioned by the Western Cape government, showed that, despite a decline in business confidence from 49 index points in the first quarter of 2012, to 45 index points, the decreasing confidence was less pronounced than that of South Africa as a whole, which fell 11 index points to 41 during the same period.
Western Cape manufacturers recorded significantly higher confidence in domestic demand and production continued at a reasonable pace, jumping to 58 during the second quarter, from 47 in the prior quarter. National manufacturing confidence fell sharply during the first quarter of 2012, as domestic demand disappointed.
Western Cape wholesaler confidence rose by 20 index points, reaching 58 during the second quarter of 2012.
Building contractors’ confidence in the Western Cape stabilised in the quarter, decreasing 2 points to 23 index points, while national confidence fell 7 points to 24 in the second quarter.
However, while national retail confidence recorded a 22 index-point fall, Western Cape confidence experienced a 43 index-points fall, to 34 index points. The BER commented that the decrease was in line with the slowing household consumption expenditure growth momentum in the first quarter.
The second-quarter First National Bank/BER consumer confidence index found that national consumer confidence fell -3, from 5 index points during the first quarter – its lowest level in two years – indicating consumers' increasing pessimism about the state of South Africa’s economy and their own finances over the next year.
Western Cape consumer confidence also deteriorated from -12 in the first quarter, to -16 index points during the second quarter.
Further, the first quarter of 2012 saw the province create 5 000 jobs, but unemployment only remained moderately lower, at 22.8%, than that of the high national unemployment levels of 25.2%.
In addition, the report noted that the forecast recession in the eurozone was also expected to impact the province’s exports, 40% of which were destined for the European Union.
“This will likely mean that the Western Cape’s gross domestic product for 2012 is likely to be lower than what was recorded during 2011 with significant downside risks stemming from adverse global economic conditions,” the report commented.
Overall, the Western Cape economy was expected to continue outperforming the national economy, which registered growth of 3.1% year-on-year during 2011.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 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.
This Week's Magazine
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.