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

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. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.


Reinstated Ingonyama Trust managers hit with retrenchment notices

The effect of Covid-19 and the land reform department’s freeze of R23-million because the ITB didn’t comply with budget submissions are cited as some of the reasons for the staff cuts

Battle over R6bn workers’ retirement fund

Allegations from both sides tumble out in court papers

Nigeria’s anti-corruption boss arrested for corruption

Ibrahim Magu’s arrest by the secret police was a surprise — but also not surprising

Eskom refers employees suspected of contracts graft for criminal investigations

The struggling power utility has updated Parliament on investigations into contracts where more than R4-billion was lost in overpayments

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday