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 6 smart ways to select the best medical scheme

It’s important to belong to a medical scheme that offers great benefits at affordable prices. However, due to insufficient knowledge, many people find themselves paying higher premiums for a medical scheme which does not even meet their needs.

Calculate your vehicle finance instalments

You’ve dreamed of a set of wheels since you can remember, and now that you’re a responsible adult with a steady income, you’re ready to take on funding to make this dream a reality. But what kind of vehicle finance options are available to you? Justmoney gives you the rundown.

Check the interest before you take a loan

Justmoney takes a look at what influences the interest rate on a personal loan, the difference between secured and unsecured loans, and its impact on the interest rate.

One retirement, so many funds – pick the right one

Saving for retirement should be one of your priorities. However, it can be confusing to choose between a pension fund, provident fund, preservation fund, or a retirement annuity if you’re not familiar with them.

Deals

Wimpy Cheese Griller Brekkie Special

Price: R49.90
When: Until 9 September
Where: Nationwide

Mowana Spa Me Time Indulge Special

Price: R899
When: Until 31 August
Where: Fourways

Premier Hotels Weekend Getaway Special

Price: From R540
When: From 1 September
Where: Nationwide