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Business confidence creeps higher

by , 08 August 2013

Earlier today, the South African Chamber of Commerce and Industry (SACCI) released its business confidence index (BCI) for July. And the index shows that business confidence improved from June to July. Let's have a closer look at what the index revealed…

After it fell from May to June, the BCI rose slightly from June to July.

The BCI crept up “to 90.7 in July from 90.2 in June, reports Fin24. But “poor global and domestic economic conditions” continue to put pressure on confidence.

An improvement maybe, but there’s still a long way to go until the index level will be back up to the dizzy heights of 2006.

For the first six months of 2006, the average was 119.5!

The figure for July is “0.2 index points” lower than for July last year, notes BDLive.

13 sub-indexes based on different economic indicators make up the BCI.

The index reflects the movements of 13 economic sub-indices

The positive, negative and neutral “movements across the BCI sub-indices” means there’s not much change to the figure, says BDLive.

When compared with last July, six indicators were lower, five were higher and two were the same.

But there’s hope for a further recovery in the index over the next few months.

SACCI says that “global economic conditions appear to be bottoming out,” reports BDLive. But SACCI warns that SA needs to “actively work at maintaining a competitive edge”.

SACCI said that South Africa needs to pay attention to certain issues, says IOL. It needs to “grasp global trade opportunities timeously” and sort out its current account deficit.

In the past the current account deficit has “been funded by capital inflows,” notes MoneyWeb.

So a step in the right direction.

Hopefully we will start to see a solid uptick over the next few months.

Business confidence creeps higher
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