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 What happens to your medical aid when you move overseas?

While exploring a different country, you may rely on the built-in travel insurance that forms part of your medical aid. However, what happens when you stay for longer than a typical vacation? This week Justmoney has a look at what you should do with your medical aid if you decide to move overseas for a period of time.

Read more

How to apply for government funding for your start-up business

Starting your own business can be challenging, especially if you don’t have the capital to get it off the ground. Fortunately, there are many ways to fund a new business in South Africa. This week Justmoney found out more about these grants, how to apply for them, and what you can do to make your business stand out from the rest.

Read more

MoneySmart: Is it worth your while?

Budgeting apps have revolutionised the way in which consumers manage their finances. From being able to access all your bank accounts to gaining access to budgeting tools, savings structures, and having your spending habits tracked – all in the palm of your hand.

Read more

Local elections, international uncertainty: How will the rand respond?

As we dust off the Easter Holiday cobwebs, we enter the business end of the local election. This brings about a lot of local noise which could increase volatility in the rand. The market will look at any headline news which could lend short-term momentum to the rand after a period of range-bound trading. 

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

KFC Variety Boxes Special

Price: R95
When: Daily
Where: Online

Colosseum Hotel Weekend Special

Price: Available on request
When: Until 25 August
Where: Cape Town

XPRESSO Café Deal

Price: R10
When: Daily
Where: Cape Town