Business confidence at 4-yr low

By Staff Writer

From Fin24, January 09 2008 

The Business Confidence Index, compiled on a monthly basis by the chamber of commerce and industry (SACCI), dropped back to 94.8 points in December from 95.8 points in November 2007, according to a statement.

"The BCI for December 2007 came in at ... the lowest level for the BCI since November 2003 and yet another new low for 2007," the statement added.

Richard Downing, the chamber's resident economist, said the survey had not factored in the result of an ANC leadership contest in mid-December when Jacob Zuma toppled South African President Thabo Mbeki as head of the ruling party but said the change would further impact on confidence.

"We foresee that 2008 will be economically more difficult than 2007... the business mood will be affected accordingly and the SACCI BCI is likely to continue to moderate in 2008," Downing told AFP.

"In addition, the change in leadership in the ruling political party and the possible policy adjustments could have important economic consequences and effects on business confidence," Downing said.

Zuma was elected with the backing of left-wing allies such as the main Cosatu labour federation in a result that was seen as a rejection by the party of Mbeki's pro-business policies.

Although the high price of precious metals and more a stable rand had assisted exports and manufacturing output in December 2007, trade, residential construction, and import volumes declined substantially, inflation moved higher, while the stock market lacked direction, added Downing.

He said expectations of a rise in inflation, slower growth and fears over crime were listed by businesses as their main concerns for the year ahead.

 

Recent Articles

Featured Your guide to debt counselling

The National Credit Regulator (NCR) reported more than 20 million consumers to be in debt in 2018 and 40% of them were behind with their payments. Due to the economic conditions in the country, many consumers find themselves incurring too much debt that they cannot repay.

Read more

Should you take a sabbatical this year?

In South Africa, sabbaticals are not as common among the general workforce – but they have become popular among executives and CEO’s. Justmoney finds out what a sabbatical is, how to convince your employer to let you take one, and how to manage your finances before and while you’re away.

Read more

A photographer’s journey into entrepreneurship

This week Justmoney chatted to this 25-year-old to understand what makes her tick, what her thoughts on money management are, and the financial advice she has for other young entrepreneurs.

Read more

Travel insurance through medical aid: Is it enough?

Having travel insurance as an added benefit with your medical aid is common practise, but what does it cover and is it enough?

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Steers Varsity Cup Monday Madness

Price: R59
When: Mondays
Where: Kimberly

Old Mutual Actuarial Bursary

Price: R0
When: 26 March - 30 May
Where: Nationwide

Tsogo SunBreaks Vacay Special

Price: R1,115 per room
When: 15 -31 March
Where: Gauteng, Cape Town, and Durban