Business confidence improves in November

DECEMBER 3, 2014

Business confidence grew to 90.8 in November 2014 from 88.8 points in October, the South African Chamber of Commerce (SACCI).

“The Business Confidence Index (BCI) gained 2.0 index points from 88.8 in October 2014 to 90.8 in November 2014.  The November 2014 BCI appears to be steering away from the desperate levels recorded over the previous six months, particularly the low 87.9 for the BCI in July 2014,” said SACCI on Wednesday.

“SACCi is relieved that the despairing mood in the business environment may be losing its grip although challenges like further power shortages could trigger a further bout of poor confidence.  A slowdown in the economies of major trading partners as well as low US dollar commodity prices could also affect the business climate negatively.”

Although the month-on-month changes in the sub-indices of the BCI improved for the second consecutive month, these short-term changes must continue into the first couple of months of 2015 for a meaningful recovery.

With three of the six financial sub-indices being positive in November 2014 compared to only one in October 2014, financial conditions could support looming improvements in the business confidence over the short-term.

For a sustained recovery in business confidence, there must be solid and consistent improvements in the business climate.

“The improvement in the November BCI is indicative that even the possibility of an improved approach to the challenges facing the economy could trigger a positive response in business confidence.  The urgency to change the course of the economy has been well established.

“The improvement in the November BCI is indicative that even the possibility of an improved approach to the challenges the economy faces could trigger a positive response in business confidence.  The urgency in changing the course of the economy has been well established but the pace of response remains slow,” said SACCI. - sanews.gov.za