Exporters push up business confidence

Ed Richardson
MANUFACTURERS AND exporters remain confident about prospects for the South African economy, according to the latest Business Confidence Index (BCI) of the South African Chamber of Business.
While the BCI fell by 3,7 points in March, it was 6,8 points above last year's March level and is the second-highest level recorded since 1990.
"The South African economy is integrally linked with that of the rest of the world and although we have learned to cope better with international developments, as a relatively small developing economy, our markets will inevitably fall foul of the negative sentiment and global turbulence that have recently plagued world markets," says Sacob in its report.
It points out that the current account of the balance of payments remains in surplus despite the fact that economic growth is increasing as well as the higher crude oil price.
Preliminary figures confirm that the position probably continued into the first quarter as the trade account registered a surplus of R5,8bn for January and February.
In February, however, the volume of merchandise exports dropped substantially but was fortunately accompanied by a decline in import volumes with the result that a smaller but still meaningful surplus was recorded in February.
Higher rand prices for imported goods due to the depreciation of the rand also acted as a deterrent in holding down imports, according to the report.
There are signs that manufacturers are starting to make inroads on the international markets.
"The earnings from the exports of commodities seem to have dropped the most while the exports of manufactured products held up well," says the report.
This is reflected in expectations in the manufacturing sector for the country as a whole increased from 57 in February 2001 to 61 index points during March.
The only decrease in regional confidence levels was a marginal decline in the Eastern Cape, although it still recorded the highest confidence level of all provinces