{"id":734131,"date":"2023-11-28T06:00:00","date_gmt":"2023-11-28T04:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=734131"},"modified":"2023-11-27T16:41:11","modified_gmt":"2023-11-27T14:41:11","slug":"over-1300-businesses-in-south-africa-have-shut-their-doors-in-2023","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/734131\/over-1300-businesses-in-south-africa-have-shut-their-doors-in-2023\/","title":{"rendered":"Over 1,300 businesses in South Africa have shut their doors in 2023"},"content":{"rendered":"\n

Data from Stats SA shows that 136 businesses closed their doors in October. <\/p>\n\n\n\n

According to Stats SA, the 120 businesses closed down voluntarily, while 16 did so on a compulsory basis.<\/p>\n\n\n\n

This means that over 1,376 businesses have been liquidated since the start of the year. <\/p>\n\n\n\n

However, the number of liquidations actually decreased by 13.4% in October 2023 compared with October 2022.<\/p>\n\n\n\n

In addition, the number of liquidations declined by 10.3% in the three months ending October 2023 compared with the same period in 2022. <\/p>\n\n\n\n

Moreover, the total number of liquidations decreased by 13.0% in the first ten months of 2023 compared with the first ten months of 2022.<\/p>\n\n\n

\n
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Source: Stats SA<\/figcaption><\/figure><\/div>\n\n\n

On a per-industry basis, the unclassified industry saw the most liquidations, with 44 in October. <\/p>\n\n\n\n

This was followed by the financing, insurance, real estate and business services industry, which saw the most liquidations, with 38 in October. This took its yearly tally to 463 – the most of any industry. <\/p>\n\n\n\n

This was followed by trade, catering and accommodation (26) and community, social and personal services (38). <\/p>\n\n\n

\n
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Source: Stats SA<\/figcaption><\/figure><\/div>\n\n\n

Difficult quarter <\/strong><\/p>\n\n\n\n

Despite the year-on-year decline in liquidations, several pieces of economic data showed that October was an abysmal month. <\/p>\n\n\n\n

For instance, the Absa Purchasing Managers\u2019 Index (PMI) dropped from an upwardly revised 46.21 in September to 45.4 in October.<\/p>\n\n\n\n

\u201cGiven that the frequency and intensity of load shedding eased notably in October, the weak performance from the activity index is perplexing,\u201d the Bureau for Economic Research (BER)<\/a> said.<\/p>\n\n\n\n

\u201cIt is now back to the July 2023 level when prolonged disruptions on the N3 transport corridor most likely resulted in a (temporary) shortage of inputs. These transport issues contributed to weak manufacturing output.\u201d<\/p>\n\n\n\n

\u201cOn the consumer front, elevated relative (food and fuel) prices, as well as restrictive borrowing costs, are depressing demand for local manufactured goods.” <\/p>\n\n\n\n

Naamsa\u2019s <\/a>New Vehicle Sales data also showed a 2% y\/y decline from 46,350 units in October 2022 to 45,445 in October 2023. This was the third successive month of decline in the new vehicle market.<\/p>\n\n\n\n

Confidence among South African business leaders also remains low due to the challenging economic environment, with the RMB\/BER Business Confidence Index dropping by two points to 31 in Q4 2023. This means that less than a third of respondents were happy with the overall business conditions.<\/p>\n\n\n\n

The low confidence amongst businesses means that South Africa’s real GDP – which is expected to slow in Q3 – is unlikely to accelerate in momentum in Q4. <\/p>\n\n\n\n

\n\n\n\n

Read<\/strong>: Major employer in South Africa sends a warning to Ramaphosa<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Businesses are closing their doors – but there are some positives to be gleaned from Stats SA’s latest data. <\/p>\n","protected":false},"author":95,"featured_media":647007,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26,1809],"class_list":["post-734131","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline","tag-stats-sa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/734131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=734131"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/734131\/revisions"}],"predecessor-version":[{"id":734165,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/734131\/revisions\/734165"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/647007"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=734131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=734131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=734131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}