SA business confidence falls in January
According to the South African Chamber of Commerce and Industry (SACCI) business confidence levels in South Africa have fallen to its lowest level in two years.
The SACCI released its January Business Confidence Index (BCI), which indicates that the index dipped to 97.1 after increasing by 1.7 points in December to 99.1.
The BIC report noted that "This is the lowest level for the BCI since May 2010 when the BCI registered 96.7.”
According to the BIC report, the decline was a result of “six of the sub-indices being negative in January 2012 compared to only three sub-indices reading negative in December 2011.”
The SACCI explained that, "The financial environment was supportive of positive business sentiment, with five of the six financial sub-indices being either positive or neutral. Only two of the seven sub-indices in the real sphere of the economy had a positive impact on the BCI between January 2012 and December 2011."
It added, "The impact on the BCI from inflation, share prices and the exchange rate of the rand, however, could be more positive in 2012 than was the case in 2011."
South Africa’s economy has serious challenges such as unemployment, low economic growth rates and an increasing inflation rate which may hempen economic outlook for the year ahead.
The SACCI also noted that, "The upcoming State of the National Address and National Budget provide the opportunity to bring about improvements.”
These improvements should strategically be implemented at all levels, by all stakeholders, who should play a key role in improving the index.
“Both should promote policy consistency in the public sector, commitment and coherency in all government spheres, and lead to enhancements in the business environment," said SACCI.
More News
- Ecowas slaps sanctions on Guinea-Bissau
- Sony to cut 10,000 jobs, turn around TV business
- Zimbabwe host Turkish businesses for trade expo
- Turkey to reduce Iranian oil imports
- SA manufacturing industry still affected by economic crisis - Davies
- South Africa seeks alternatives for Iranian oil supply
- SA investment and trade tour begins in Brazil
- Kenya health workers vow to continue strike
- Zuma opens Dube Trade Port
- SADC ministers meeting concludes in Luanda
