Business confidence improved in September this year, but is still at undesirably low levels, the SA Chamber of Commerce and Industry (Sacci) said on Tuesday.<\/p>\n
Sacci said the business confidence index (BCI) increased by 0.2 index points in September to 89.2, after it improved by 1.1 index points in August 2014.<\/p>\n
“Although it appears that waning business confidence has been checked, business confidence remains at an undesirably low level. Such a low confidence level was last observed in early 2000,” Sacci said in a statement.<\/p>\n
“It is of concern that the poor business confidence performance is extended over such a long period — an average of 91 for the Sacci BCI since December 2012.”<\/p>\n
The September 2014 BCI was 2.2 points below the September 2013 level of 91.4.<\/p>\n
Sacci said the BCI averaged 90.3 in the first three-quarters of 2014 compared to the 91.4 in 2013.<\/p>\n
Four of the seven physical activity sub-indices were positive month-on-month in September 2014, compared to three in August 2014, but none of the six financial sub-indices of the BCI were positive, said Sacci.<\/p>\n
“More depressed levels of real economic activity — the BCI covers seven such sub-indices indicative of the real economy — than a year ago (year-on-year) reflect a significant handicap on the business climate,” said Sacci.<\/p>\n
“The lower year-on-year level of business confidence in September 2014 came largely from a more constrained financial environment than a year ago. All six financial sub-indices weighed negatively on the BCI.”<\/p>\n
Sacci said the disruptions of the real economy in the first half of 2014 led to broader consequences because it impacted on various financial indicators.<\/p>\n
Sacci said it was concerned that the prospects for the South African economy were becoming more desperate as economic performance and the business mood were at a low ebb.<\/p>\n
Needs, expectations and demands were not commensurate with output, supply and value added, Sacci said.<\/p>\n
“A series of negative economic and socio-political developments are also putting the economic outlook under severe pressure.”<\/p>\n
Sacci said the Medium-Term Budget Policy Statement (MTBPS), to be presented by the finance minister on October 22, should respond to a weakening financial environment and address public finance issues.<\/p>\n
SA business confidence shows some recovery<\/a><\/strong><\/p>\n SA business confidence hits 15-year low<\/a><\/strong><\/p>\n