Business confidence at three-year low

Business confidence dropped to its lowest point last month since March 2009, the South African Chamber of Commerce and Industry (Sacci) said on Tuesday.

Its Business Confidence Index for March dropped to 95.7, after rising by 2.4 points in February.

In March 2009, when the business cycle was in a downward phase, the BCI stood at 93.1.

“The fluctuations in the BCI reflect volatile confidence within an unpredictable/uncertain business climate,” Sacci said in a statement.

Global uncertainty coupled with a tentative local outlook contributed to all sub-indices being either negative or neutral on a monthly basis.

Three of the six financial sub-indices were negative and three were neutral on a month-on-month basis in March 2012, echoing restraint in the business mood.

Negatively biased
The real economic environment was negatively biased from February to March 2012.

“The continuing fluctuations in business confidence mirror an inherent instability and uncertainty in the business environment,” Sacci said.

“Sustainable, higher levels of business confidence need a solid economic basis driven by sound, structural economic fundamentals.”

Economic assets would be created and maintained by promoting a greater focus on the investment side of the economy and shifting resources away from the consumption side.

This would enable future consumption, rather than current consumption and would secure a more optimistic and less volatile business mood, Sacci said. — Sapa

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories


Subscribers only

How lottery execs received dubious payments through a private company

The National Lottery Commission is being investigated by the SIU for alleged corruption and maladministration, including suspicious payments made to senior NLC employees between 2016 and 2017

Pandemic hobbles learners’ futures

South African schools have yet to open for the 2021 academic year and experts are sounding the alarm over lost learning time, especially in the crucial grades one and 12

More top stories

Zuma, Zondo play the waiting game

The former president says he will talk once the courts have ruled, but the head of the state capture inquiry appears resigned to letting the clock run out as the commission's deadline nears

Disinformation harms health and democracy

Conspiracy theorists abuse emotive topics to suck the air out of legitimate debate and further their own sinister agendas

Uganda: ‘I have never seen this much tear-gas in an...

Counting was slow across Uganda as a result of the internet shutdown, which affected some of the biometric machines used to validate voter registrations.

No way out for Thales in arms deal case, court...

The arms manufacturer has argued that there was no evidence to show that it was aware of hundreds of indirect payments to Jacob Zuma, but the court was not convinced.

press releases

Loading latest Press Releases…