SA business confidence edges higher, but still down on year ago

(iStock)
(iStock)

South African business confidence ticked higher in June, but remains below levels from a year ago after weak economic data and power blackouts in the first half of 2019.

An index measuring sentiment rose to 93.3 in June from 93 in May, the South African Chamber of Commerce and Industry said Wednesday, without providing further information. Details about the performance of the sub-indexes will be published by Friday, it said in an emailed statement.

Key Insights

  • Stubbornly low South African business confidence adds to the risk that the economy may fall into its second recession in as many years. The gauge has been below 95 for the past five months, close to the three-decade low 89.6 of August 2017.
  • SA is stuck in its longest downward cycle since 1945, remaining weak for the 67th consecutive month in June, according to data from the Reserve Bank.
  • While mining and manufacturing output show signs of revival after a loadshedding hamstrung production and led to a 3.2% annualised decline in gross domestic product in the first quarter, weak sentiment threatens to derail a sustainable recovery in the two sectors that account for 23% of GDP.
  • Business sentiment jumped to a two-year high in early 2018 after Cyril Ramaphosa won the leadership of the ANC and the country but slumped as reforms were stalled.
ZAR/USD
16.91
(+0.72)
ZAR/GBP
21.17
(+0.34)
ZAR/EUR
19.09
(+0.43)
ZAR/AUD
11.72
(+0.54)
ZAR/JPY
0.16
(+0.81)
Gold
1771.69
(+0.23)
Silver
17.92
(-0.27)
Platinum
820.82
(+0.35)
Brent Crude
42.09
(+1.84)
Palladium
1902.01
(+0.29)
All Share
54637.86
(+1.58)
Top 40
50350.20
(+1.57)
Financial 15
10284.15
(+2.82)
Industrial 25
76297.08
(+1.41)
Resource 10
50561.07
(+1.16)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1522 votes
I am taking a hit, but should be able to recover in the next year
23% - 1985 votes
My finances have been devastated
34% - 2965 votes
It's still too early to know what the full effect will be
25% - 2153 votes
Vote