Business confidence on the rise

The RMB/BER Business Confidence Index (BCI) jumped from 44 points in the fourth quarter of 2010 to 55 in the first quarter of 2011, indicating that strong GDP growth was probably sustained during the early months of 2011. An index number in net positive territory – i.e. above the neutral level of 50 – means there are now more companies that are optimistic than pessimistic about prevailing business conditions, said Ettienne Le Roux, chief economist at RMB. The last time this was the case was three years ago. “Other than prospective higher levels of corporate investment, what the latest RMB/BER BCI results also imply is that growth momentum is spreading,” he said.