Economy’s torpor results in tepid business confidence once again
Since 2008, the business confidence index has been above the neutral 50 mark only on four occasions
SA is still struggling to ignite business confidence. The RMB/BER business confidence index (BCI) increased marginally by two points to 40 in the first quarter of 2017. Since 2008, the BCI has been above the neutral 50 mark only on four occasions, indicative of a weak economy. Improvement in business confidence is critical for economic growth and avoiding a credit-rating downgrade. The index is based on 1,600 regular participants in the five most cyclical-sensitive sectors of the economy. With the exception of a few industries benefiting from the revival in agriculture, mining and manufacturing exports, business confidence remains weak. In the retail trade sector, business confidence increased in the first quarter by 11 points to 45 points. Confidence crept slightly higher in the wholesale sector to 56 points and the motor trade sector to 30, but declined in building and manufacturing. Despite marginal improvements, respondents remained unsatisfied with business conditions. Business...
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