SA's improving business conditions lift Business Confidence Index for Q3
The three-point increase in the Business Confidence Index brings it to the best level since the fourth quarter of 2022, when confidence was also at 38 points.
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JOHANNESBURG - Investors appear cautiously optimistic about improving business conditions in the country, as the post-election jitters start to subside.
Following a five-point increase in the second quarter, the Business Confidence Index rose by another three points to reach 38 in the third quarter of the year.
This is the first business sentiment survey by Rand Merchant Bank (RMB) and the Bureau for Economic Research following the formation of the Government of National Unity (GNU).
The three-point increase in the Business Confidence Index brings it to the best level since the fourth quarter of 2022, when confidence was also at 38 points.
At the current level, just under four out of ten businesses were satisfied with prevailing business conditions.
Wholesalers and building contractors saw a decline in confidence.
While conditions in the manufacturing sector have deteriorated, the confidence ticker in the sector remains unchanged.
Retailers and new vehicle dealers showed an improvement in confidence.
RMB and the Bureau for Economic Research believe there’s also been a significant decline in the seriousness of the general political climate as a constraint on business and investment decisions.
Although investors are still worried about some constraints, including weak demand, the forward-looking investment outlays turned more positive in the third quarter.