Guiding consumers since 2009

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 New homeowner? Be aware of these extra expenses

You’ve overcome all the hurdles of buying a home. You’ve managed to pay your deposit and your closing payments, and now you’re a proud title deed holder. However, there are other expenses waiting around the corner. Are you prepared?

Your biggest credit conundrums – answered

Understanding your credit health is one of the most important factors in managing your finances. This is because it gives you insight into your debt, your borrowing ability, and your financial history. While many understand this, there are still many questions on how to do just that.

Avoid debt collectors, choose debt counselling

There are two things you can do when you are struggling to pay your debt. You can either let your creditors hand your debt over to debt collectors – or you can let debt counsellors help you deal with your debt.

Retail notes: easy investment option for new investors

Being a newbie in the world of investing can be challenging because you don’t know where and how to invest. With so many investment options, you could easily be befuddled. Justmoney looks at how retail notes can help you cut your teeth in the world of investing.   

Deals

Translux Student Discount

Price: Depends on destination
When: Daily
Where: Nationwide

Zimbali Senior Citizens Discount

Price: From R1342.00
When: Until 14 December 2019
Where: KwaZulu Natal

Free meal for kids at Mozambik Restaurant

Price: Free
When: Until 15 November 2019
Where: Johannesburg, Durban, Pretoria