Business Confidence drops slightly in October

The Business Confidence Index (BCI) declined slightly in October, says the South African Chamber of Commerce and Industry (Sacci).

The Business Confidence Index (BCI) declined slightly in October, says the South African Chamber of Commerce and Industry (Sacci).

The Business Confidence Index (BCI) declined slightly by 0.3 from 91.4 in September to 91.1 in October 2013. It is only the second time in the last six months that the BCI was above the level of 91 index points,” said Sacci on Wednesday.
 
The October 2013 BCI - which is market influenced and accounts for economic and other developments that have a bearing on the business mood in the country - was 0.9 index points below the level of October 2012.
 
Six sub-indices of the BCI failed to change meaningfully between September and October thus reflecting on a year-on-year basis, six sub-indices made positive contributions to the BCI.
 
Seven of the indices had a negative impact on activities such as manufacturing output, retail sales and new vehicle sales contributing to the downward pressures on the BCI in October.
 
The chamber expressed concern about on-going labour disputes.
 
“Sacci is concerned that the on-going labour disputes and disruptions of business, as well as the risks to South Africa’s sovereign ratings, are a continual weight on an already tentative business climate. Lingering economic challenges in some of the larger economies of the world also contributed to the tentative business climate resulting in low business and investor confidence.”
 
Sacci said the promotion of the National Development Plan (NDP) as a comprehensive framework for accelerated economic growth is also key to turning the tide on the tentative business climate in South Africa