Business confidence at 16-year plus low

Business confidence in South Africa is at a more than 16-year low, with the South African Chamber of Commerce and Industry (Sacci) Business Confidence Index (BCI) having dropped by 2.3 index points to 84.6 in June from 86.9 last month.
The data, released yesterday morning (Tuesday), showed that this level was 5.1 points lower than in June 2014 and the lowest level since the 83.9 of January 1999 – a sixteen and a half year low.

According to Sacci economist Richard Downing, the BCI is now more than 37 index points below the high level of 121.9 recorded in December 2006. He said month-on-month real activity was negative in total with all seven sub-indices declining.

Four of the six financial sub-indices were negative year-on-year while one was undecided and one positive. Five of the real activity sub-indices were negative, two were positive while increased lending to the private sector slightly improved the financial environment.

“The low confidence levels in South Africa are signalling a business climate that does not accept or appreciate private initiative of the individual or business seriously enough. It is time to reconsider,” said Downing.