Embargo: 11:30 – 10 December 2024
Business Confidence Gaining Traction
The broader political representation in the administration of national government has facilitated a positive assessment of economic prospects by business. This positive assessment spilled over into the business climate, improving sentiment and stability, as reflected by the sub-indices from which the SACCI Business Confidence Index (BCI) is compiled. The BCI has, since the formation of the new administration in June 2024, improved gradually from a low level of 107.8 in May 2024 to 118.1 in November 2024 – a 10.3 index-point improvement. Over the year to November 2024, the BCI improved by 6.6 index points.
In the short term (month-to-month), between September 2024, October 2024, and November 2024, the BCI improved by 3.6 and 3.4 index points, respectively, after the dip of 1.2 index points in September. Only two of the fourteen sub-indices had a negative bearing on the BCI in October 2024, and despite the five sub-indices that turned slightly negative in November, the BCI still improved by 3.4 points in November. There was no sub-index that had a significant negative effect on the BCI in November.
SACCI’s BCI increased by 6.6 index points year-on-year in November 2024 – the largest year-on-year improvement for a month since the Covid-19 restrictions were lifted in December 2022. More inward tourist numbers, higher precious metal prices, and increased new vehicle sales made the most notable positive impact on the BCI in November. Lower merchandise import volumes had the only noteworthy negative impact on the BCI.
SACCI noted with concern and disappointment the slow economic growth of 0.4% y/y for the first nine months of 2024, which reflects the perplexing situation the South African economy finds itself in. The strong upward momentum of business confidence, however, confirms the resolve and understanding by the private business sector to contribute and play its respective role to improve economic performance.
This private sector effort must, however, be complemented by an efficient and proficient public sector. The collaborative effort between business and the public sector could see the translation of improved business confidence into investor confidence, higher and sustainable economic growth, and job creation.
For more information, contact:
Alan Mukoki SACCI CEO 082 551 1159
Richard Downing SACCI Economist 082 822 5566
For a full background to this month’s SACCI BCI see the full BCI report on https://sacci.org.za/sacci-business-confidence-index/
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