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 Should you authorize a minor on your credit card?

If you have children who need to move around independently, it may be practical to authorize them as users on your credit card. However, is this the right thing to do?

Economic devastation sees rapid rise in debt counselling

A survey conducted by DebtBusters indicates that consumers are increasingly turning to debt counselling.

How to reduce your risk of identity theft

Imagine your friend is a victim of identity fraud. We have a look at what this entails, and we find out what you can do to avoid getting into this situation yourself.

Deals

Wednesday Burger Nights at The Vineyard

Price: R190
When: Wednesdays
Where: Cape Town

Sanctuary Touch Monthly Special at Sanctuary Spa

Price: R490
When: Mondays to Sundays
Where: Cape Town

Blowdry Packages at Oayssis Hair and Beauty Bar

Price: R850 to R1800
When: Anytime
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions