Guiding consumers since 2009

Business confidence at 3 year low

By Staff Writer


From business iafrica.com
November 7 2007
AFP

Business confidence in South Africa has plunged to a three-year low amid uncertainty in international markets and local policy shifts, a chamber of commerce survey revealed on Wednesday.

"The BCI, after bouncing back to 98.7 in September 2007, dropped to 96.9 in October 2007 which is the lowest level for the BCI since June 2004 and a new low for 2007," said the survey by South African Chamber of Commerce and Industries (SACCI).

"Businesses are becoming more concerned about international economic developments as well as local adjustments taking place," SACCI economist, Richard Downing told AFP.

"The sub-prime problems in the USA have not only affected the financial markets, but have also led to growth prospects declining.

Unsustainable domestic economic developments

"The corrections and adjustments that have followed on some unsustainable domestic economic developments over the past two to three years are now affecting the South African economy more harshly," Downing added.

Business confidence has been on the decline recently after sustaining a moderate trend since the beginning of 2007.

Downing said the slowdown came on the back of "favourable business conditions that could either not be sustained or conditions that were based on unrealistic short to medium-term economic developments".

He said the strength of the rand was also failing to "put the balance of payment issues on the right track".

Downing said business should be prepared for an environment that was more fickle than predictable.

"The loss in confidence will affect consumers' spending and make it difficult for exporters to do business," Downing added.

Recent Articles

Featured Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

What to do when you’ve been denied a home loan

After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?

Best travel cards offered by top South African banks

Planning a trip abroad involves a lot of administration. You need to consider travelling arrangements, reasonable accommodation, and a daily itinerary. But have you considered how you’re going to pay your bills once you arrive? Besides considering bank costs, you also need to consider exchange rates.

Deals

Takealot January Big Sale

Price: Available on request
When: Until 31 January 2020
Where: Online

Annique Restore Package Special

Price: From R600
When: Until 31 January 2020
Where: Centurion

Ster-Kinekor Senior Citizens Discount

Price: Available on request
When: Daily
Where: Nationwide