The recent SACCI Business Confidence Index (BCI) has indicated that there was a slight improvement the (BCI). It improved by a further 1.3 index points in December 2017 to 96.4 following on the improved business mood in November 2017.
BCI was nearly seven index points better in December 2017 than the lowest 2017 BCI level of 89.6 in August 2017. The average for the BCI in 2017 was slightly up to 94.4 compared to the average of 93.5 for 2016. The BCI only partially explains the current improvement in the business mood as political developments taking place in the Southern African region, also contributed to raise expectations.
The anticipation for more policy certainty and sustainable growth orientated domestic economic policy, global economic growth, and a probable fresh approach towards business and investor challenges should further augment the business mood. Traces of improvement have supplemented the business mood, and business climate in the financial markets, and the economy and the latest economic figures confirm suggestions of improving prospects.
The challenges faced by fiscal consolidation, unemployment, excessive debt, low growth and sovereign credit ratings are difficulties that require visionary leadership and urgent and robust action.
There appear to be suggestions of optimism beyond the improvement in SACCI’s Business Confidence Index. Economic dynamics in Southern Africa have set in motion the realisation that economic performance could improve to serve the broader population.
For a full background to this month’s SACCI BCI contact Mmabatho at 013 243 2253 or secretary@middelburginfo.com.