Nokukhanya Mntambo6 March 2024 | 18:00

Drop in Business Confidence Index may spook investors

This is the latest data to come from a survey by Rand Merchant Bank and the Bureau for Economic Research on Wednesday.

Drop in Business Confidence Index may spook investors

JOHANNESBURG - Investors are expected to remain spooked as the country's economy shows little signs of recovery.

The Business Confidence Index dropped another point in the first quarter of the year, falling from 31 index points to 30.
 
This is the latest data to come from a survey by Rand Merchant Bank and the Bureau for Economic Research on Wednesday.
 
Following a two-point decline in the fourth quarter of last year, the latest drop in the poll means the country remains stuck at low levels of business confidence.
 
Business confidence is an important ingredient for much needed fixed investment, which helps spur job creation and economic growth.
 
The latest figures point to seven out of ten businesses being unsatisfied with prevailing business conditions.
 
Overall major industries appear to be worried about challenges in the energy and logistics sectors, crime and political uncertainty.
 
Building contractors were once again the least pessimistic of all sectors surveyed.
 
On the other hand manufacturers and retailers were the most pessimistic.
 
Retail confidence was mostly weighed down by poor consumer demand.