Today saw the publication of not one, but two, business confidence indices. One from the business grouping SACCI, and the other from RMB/BER. Both suggested that there has been a slump in confidence, although the scale of the fall differed between them.
The SACCI Business Confidence Index (BCI) declined slightly from 90.7 in July to 90.5 in August 2013. Apart from the impact of labour protest activity, SACCI identified three further significant economic challenges confronting the South African business environment – slow economic growth, rising inflation and the exchange rate of the rand.
After fluctuating around the neutral 50 mark for about a year now, the RMB/BER Business Confidence Index (BCI) fell notably into net negative territory in the third quarter. The BCI declined by six index points to 42, which indicates that close to three fifths of the respondents rated prevailing business conditions as unsatisfactory.
If business is worried, we should all be.
Tweet of the day:
Puns (@omgthatspunny): A noun and a verb were dating but they broke up because the noun was too possessive.
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