X

This is not a paywall.

Register for free to continue reading.

The news sucks. But your reading experience doesn't have to. Help us improve that for you by registering for free.



Please create a password or click to receive a login link.


Please enter your password or get a login link if you’ve forgotten


Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We'd like our readers to start paying for Daily Maverick

More specifically, we'd like those who can afford to pay to start paying. What it comes down to is whether or not you value Daily Maverick. Think of us in terms of your daily cappuccino from your favourite coffee shop. It costs around R35. That’s R1,050 per month on frothy milk. Don’t get us wrong, we’re almost exclusively fuelled by coffee. BUT maybe R200 of that R1,050 could go to the journalism that’s fighting for the country?

We don’t dictate how much we’d like our readers to contribute. After all, how much you value our work is subjective (and frankly, every amount helps). At R200, you get it back in Uber Eats and ride vouchers every month, but that’s just a suggestion. A little less than a week’s worth of cappuccinos.

We can't survive on hope and our own determination. Our country is going to be considerably worse off if we don’t have a strong, sustainable news media. If you’re rejigging your budgets, and it comes to choosing between frothy milk and Daily Maverick, we hope you might reconsider that cappuccino.

We need your help. And we’re not ashamed to ask for it.

Our mission is to Defend Truth. Join Maverick Insider.

Support Daily Maverick→
Payment options

Sacci Business Confidence Index sags again in May to lo...

Business Maverick

SACCI INDEX

Business confidence sags again in May to lowest level in almost two years

(Image: iStock)

The South African Chamber of Commerce and Industry’s Business Confidence Index sagged for the third month running in May, falling to 89.3 from 93.7 in April. It is the latest signal of waning confidence in an economy that is on the ropes.

The Business Confidence Index (BCI) reading of 89.3 was the lowest since the 85.7 of September 2020, the South African Chamber of Commerce and Industry (Sacci) said in a statement on Tuesday. This marked the third consecutive month of decline, a clear signal that business confidence in South Africa is eroding. 

Sacci noted the usual suspects of late: the Russian invasion of Ukraine, rising inflation and interest rates on the domestic and global fronts, the IMF’s sharp downward revision in global growth projections and the KZN floods.  

Load shedding didn’t get a mention in the release. It may be the case that power cuts are simply now a given, like the sun rising in the East each morning. But it is clearly weighing on confidence and investment decisions. 

The index is different from others in that its range is not zero to 100. It is measured against 2015, which equals 100. It is revealing to note that the index has not cracked 100 since October 2015. And at 89.3, it is not much higher than the 86.5 average for 2020, which was simply a catastrophic year for the economy. 

It’s also telling that it never once fell below 90 in 2021. 

Business confidence is going south after showing signs of recovery in the first quarter of this year, when the economy grew by a surprising 1.9% on a quarter-on-quarter basis. 

So the Sacci BCI readings add to a swelling body of data and evidence that economic growth has slowed significantly this quarter. 

Are there any bright spots? Among Sacci’s “business climate indicators”, vehicle sales and construction both put in year-on-year gains. 

There are other indicators pointing to a rebound in construction, which is welcome as it is labour intensive and is also a sign of investment trends. Building stuff counts as investment. 

But overall, the business outlook is indeed bleak as winter sets in. DM/BM

Gallery

Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or sign in if you are already an Insider.

Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. That’s what we want from our members. Help us learn with your expertise and insights on articles that we publish. We encourage different, respectful viewpoints to further our understanding of the world. View our comments policy here.

No Comments, yet

Please peer review 3 community comments before your comment can be posted