The debt stress of South African businesses deteriorated slightly in the first quarter of 2017, and the Cabinet reshuffle is expected to make businesses less willing to make significant capital investments. The Experian business debt index was -0.081 for the first quarter of 2017, down from -0.069 in the fourth quarter of 2016, reflecting a slight deterioration of business health. The index is an indicator of the health of businesses based on their debt settlement. The zero line distinguishes between improving and deteriorating business debt stress levels. Experian SA MD Simon Russell said: "The latest index movement is contrary to the anticipated improvement of business stress into positive territory following last quarter’s result. This is largely attributed to the lower than expected economic growth environment that businesses faced in the first quarter of 2017." It suggested business were taking "a conservative approach in their corporate strategies preferring to ensure solid ba...
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