Connect with us

Economy

South Africa’s August business confidence lowest in 34 years — SACCI

Published

on

South African business confidence fell to its lowest level in 34 years in August, as a sharp drop in export volumes and a weaker currency aggravated already tough economic conditions, a survey showed on Wednesday.

The South African Chamber of Commerce and Industry’s monthly business confidence index (BCI) fell to 89.1 in August from 92.0 in July, the lowest level since the inception of the index in April 1985 when the measure was at 88.1, the business body said.

“We’re not talking about the same set of circumstances as back then, but you are seeing a similar economic climate,” said SACCI economist Richard Downing.

“This time the main thing is the difficulty government is having in implementing what needs to be done.”

SACCI said seven of the 13 sub-indices in the BCI deteriorated between August and July, four improved, while two remained unchanged.

Merchandise export volumes, the exchange rate weighted against major trading and investment currencies, and share prices on the Johannesburg Securities Exchange were the most negative contributors.

South Africa economy recorded a surprise 3.1% expansion in the second quarter after contracting by the same margin in the first quarter following a sector-wide slowdown driven by power outages.

But the economic growth outlook remains meek amid lack of clarity and progress on reforms.

On Tuesday, ratings firm Moody’s, the last of the top-three credit agencies to rate the country’s sovereign debt at investment grade, warned of the risk of ongoing uncertainty and the slow pace of reforms, especially at cash-strapped power utility Eskom. (Reuters/)
JI/PIO

(Edited by Joe Idika/Idonije Obakhedo)

Load more

Contact US: editor[at]nnn.com.ng, nnnnews247[at]gmail.com

Recent Posts

NNN News Nigeria: NNN is an online Nigeria news portal that publishes breaking news in politics, business, entertainment, sport, security, features, opinion, environment, education, technology, and the world news at large. NNN publishes only news that is factual, credible, verifiable, authoritative and investigative. NNN is a media subscriber of the News Agency of Nigeria. NNN is a unique media organization that is founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favor. Contact: editor[at]nnn.com.ng

© 2014 - 2019 NNN News Nigeria. All Rights Reserved.