Business confidence slips again as Ramaphosa euphoria flags
SA’s business community is looking for action from President Cyril Ramaphosa as the initial euphoria over his appointment begins to flag.
Business confidence declined in March to 97.6 index points from 98.9 in February, the South African Chamber of Commerce and Industry (Sacci) reported on Thursday.
More certainty has to be obtained to bring fixed investment and the economy onto a healthy platform for growth.South African Chamber of Commerce and Industry
This marked the index’s second month of decline from January when it reached a two-year high of 99.7 points following Ramaphosa’s election as ANC president, positioning him to oust Jacob Zuma as the country’s president in February.
The index is 3.8 points higher compared with a year ago. On average, the BCI was 98.7 in the first quarter of 2018 compared with 95.7 in the first quarter of 2017 and 94.8 in the fourth quarter of 2017, showing a marked improvement in confidence.
The business mood remains buoyant but there appears to be a need for it to be supported by an improvement in the real economy and better financial conditions, Sacci said in a statement on Thursday.
Three of the 13 subindices that make up the composite Sacci BCI had a positive monthly impact in March 2018, four subindices were unchanged and six were negative month-on-month.
"The business and economic climate remained favourable in the first few months of 2018 and there was a serious attempt to eradicate the most obvious maladministration and financial mismanagement in the public sector.
"More certainty has to be obtained to bring fixed investment and the economy onto a healthy platform for growth," said Sacci.