Business sentiment lifts a bit in November, but could be a once-off event
Sacci's measure of business sentiment improved to 92.7 points in November, but is down year on year
Business confidence, measured by the SA Chamber of Commerce and Industry (Sacci), registered a small month-on-month increase in November, driven by higher export and import volumes.
The Sacci business confidence index (BCI) measured 92.7 points in November, up one point from October, but still 3.4 points below November 2018’s figure. In October, the index was 4.1 points below the level seen in the same month in 2018.
Three of the seven economic activity subindictors rose, although Sacci noted that the weak economy continued to negatively affect manufacturing, retail trade, new vehicle sales and construction.
The average of two economist polled by Bloomberg was for the index to fall slightly to 91.5 index points.
Sacci warned on Thursday the slight increase could be a once-off event, saying “the business climate remains tight as the economy continues to struggle”.
“Lower global growth and uncertain world trade do affect the SA economic performance. The difficulty in decision-making aimed at the inevitable structural adjustments necessary to let the economy perform better, are still lacking,” the statement read.
“The effect of indecisiveness and the time lapses to taking action are going to impact critically on the economy and therefore business and investor confidence as year-end approaches,” Sacci said.