Business confidence dips again
The business confidence
index (BCI), which the Bureau for Economic Research conducts and Rand Merchant Bank sponsors, slid again from June to August this year, says Fin24
. This has stoked worries that South Africa is on the brink of recession.
The survey “covered 2,000 firms in the building, manufacturing, retail, wholesale and motor trade sectors,” says BDLive
. More than 60% of those surveyed “were unhappy about prevailing business conditions”.
The index fell to “its weakest since late 2011,” notes IOL
. It highlighted that “sentiment [was] particularly low among retailers and wholesalers”.
The business confidence index fell “five points to an almost four year of 38,” reports BDLive
. This follows a six point fall over the second quarter.
Could a recession be looming for SA?
The chief economist at RMB, Ettienne le Roux, said when the index falls “below 30” it was a sign of “pending recession,” adds BDLive
RMB said there was a stark fall in retail confidence, notes MoneyWeb
. Sales are feeling the impact of “moderating wage inflation, higher tax rates, rising interest rates, growing job losses and sharply lower consumer confidence”.
Mr Le Roux added that with the economy so weak, it makes it “even more vulnerable by increased uncertainty around political, economic policy and labour developments,” adds Fin24
. A small setback could “actually push it over the edge,” such as a strike in the gold mining sector.
This latest economic indicator comes after the economy contracted 1.3% in the second quarter of the year
The signs are certainly not good for the economy at the moment.
*********** Best seller *************
The only thing standing between you and becoming a millionaire, is you
My mentor, Mark Ford made a million dollar decision very early in his career. This decision was simply a shift in his mind-set. Doing so allowed him to go from broke to millionaire in just a year.
The idea sounds bizarre and too good to be true, but it truly has the power to do this for you, too. If you're willing to shift the way you think about your finances and open your mind to new ideas, I guarantee your income will be much greater in a year from now.
Your success is waiting on you to make the first move and I promise you, this ‘shift’ will change your life, just like it did mine and just like it did Mark’s.
Eliminate the roadblock to your millionaire lifestyle…