CONFIDENCE INDEX
Farming sector optimistic about growth outlook
The latest agribusiness confidence index dips, but remains in expansionary territory
The agribusiness sector remains upbeat about growth and job creation despite policy uncertainty on land reform and the drought in the Western Cape. According to the latest Agricultural Business Chamber (Agbiz) and the Industrial Development Corporation agribusiness confidence index for the second quarter of 2017, confidence declined a marginal one index point to 56 points. The sector remains in expansionary territory, with a reading above 50. This is the fourth consecutive expansionary reading, indicating that agricultural activity continues to stabilise following the damage of the 2015-16 drought. The economy plunged into a technical recession last week, with Statistics SA revealing that real GDP shrunk 0.7% in the first quarter of 2017. Stats SA noted that agriculture and the mining industry contributed positively to growth but not enough to prevent the recession. According to the agribusiness confidence index, the sub-indices for capital investment, market share, employment, volu...
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