Xinhua, Johannesburg :
South Africa’s Business Confidence Index (BCI) for December 2014 shed 2.5 index points, declining from 90.8 in November to 88.3, according to data released on Thursday.
Last month’s BCI is 3.6 points below the December reading of 2013, the South African Chamber of Commerce and Industry (SACCI) said.
The 88.3 reading is the lowest level since July 2014 when the BCI measured 87.9.
“Given the highest level of 122.1 for the BCI in December 2006, the present level remains a matter of grave concern,” SACCI said while releasing the data in Johannesburg.
The average for the BCI in 2014 was 90.0 compared to 91.4 in 2013. The previous lowest annual average was 87.6 in 1999 and the highest BCI annual average was 118.8 in 2006 with the BCI at 100 in 2010 which serves as base year.
Although the subdued business confidence was broad based (five of the thirteen sub-indices were positive y/y), the rand exchange rate made a marked negative impact, the chamber said.
The financial situation was weaker than in December 2013. Four of the seven physical activity sub-indices of the BCI recorded changes that were positive (m/m) in December compared to three in November 2014, confirming subdued economic activity.
The immediate economic outlook for South Africa is largely influenced by the much lower international crude oil price and electricity power shortages, said the chamber, adding that these two developments are contrary to each other in influencing the economy.
South Africa’s Business Confidence Index (BCI) for December 2014 shed 2.5 index points, declining from 90.8 in November to 88.3, according to data released on Thursday.
Last month’s BCI is 3.6 points below the December reading of 2013, the South African Chamber of Commerce and Industry (SACCI) said.
The 88.3 reading is the lowest level since July 2014 when the BCI measured 87.9.
“Given the highest level of 122.1 for the BCI in December 2006, the present level remains a matter of grave concern,” SACCI said while releasing the data in Johannesburg.
The average for the BCI in 2014 was 90.0 compared to 91.4 in 2013. The previous lowest annual average was 87.6 in 1999 and the highest BCI annual average was 118.8 in 2006 with the BCI at 100 in 2010 which serves as base year.
Although the subdued business confidence was broad based (five of the thirteen sub-indices were positive y/y), the rand exchange rate made a marked negative impact, the chamber said.
The financial situation was weaker than in December 2013. Four of the seven physical activity sub-indices of the BCI recorded changes that were positive (m/m) in December compared to three in November 2014, confirming subdued economic activity.
The immediate economic outlook for South Africa is largely influenced by the much lower international crude oil price and electricity power shortages, said the chamber, adding that these two developments are contrary to each other in influencing the economy.
