CAPE TOWN – The SA Chamber of Commerce and Industry (SACCI) on Thursday announced that the Business Confidence Index (BCI) for November 2018 measured 96.1 and had increased by only 0.3 index point month-on-month.
BCI is an economic indicator that measures the amount of optimism or pessimism that business managers feel about the prospects of their companies.
The BCI was one index point higher than in November 2017. The upward momentum of the BCI since September 2018 appears to have flattened and it is the second time this year that the business climate hesitated after encouraging steps to develop and enhanced business confidence.
In November 2018, three sub-indices were positive month-on-month, three were unchanged, and seven declined on their October levels. Four of the seven real-activity sub-indices had a negative month-on-month impact on the BCI and three of the six financial sub-indices were negative in November 2018.
The November BCI level was supported by improvements of merchandise export and import volumes, the real value of building plans passed and manufacturing output. The year-on-year decline in the all-share price index of the JSE, higher inflation, lower precious metal prices, and stagnant real retail sales weighed the most negatively on the BCI in November 2018.