Jul 26, 2012
Western Cape confidence higher than rest of SABack
Africa|First National Bank|Africa|South Africa|Building|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
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...