Cabinet reshuffle has less of an impact than feared
But economists say the full force is expected to be seen when the hard data for April is released in June and the knock to confidence will be felt in the second quarter
Business confidence and the purchasing managers index (PMI) faired better than expected, showing signs that the cabinet reshuffle and downgrade to "junk" status may have had a less immediate impact than feared. Despite the Absa PMI showing a contraction in the manufacturing sector, a knock to confidence and banks revising down their growth forecasts, the economy as a whole hasn’t been hit hard yet. Economists say the full impact is expected to be seen when the hard data for April is released in June and the knock to confidence will be felt in the second quarter. The South African Chamber of Commerce and Industry (Sacci) Business Confidence Index (BCI) was marginally up 1.1 index points in April from 93.8 in March. Ashbourne added that the BCI was a key of how the economy will hold up under the weight of increased political risk. "Today’s figure suggests that this year’s cabinet reshuffle has had less of an immediate impact on business sentiment." Ashbourne cautioned, however, that t...
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