Businesses still under immense pressure in South Africa
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GUEST – Siobhan Redford - RMB's Economist
Although business confidence edged higher in the third quarter of 2023 thanks to reduced load shedding over the period – the country is back in the throes of stage 6 load shedding, while other businesses are concerned about risks of social unrest, as optimism remains very weak.
This is according to the latest RMB/BER Business Confidence Index (BCI), which ticked higher to 33 in Q3 2023 from 27 in the second quarter. Although higher, sentiment is still very weak, with the current level of the index suggesting that two-thirds of respondents are still dissatisfied with prevailing business conditions.
The third quarter survey was conducted by the BER between 16 August and 31 August 2023. The survey covered 1,050 senior executives in the building, manufacturing, retail, wholesale, and motor trade sectors. “The challenges posed by relatively high interest rates, the resultant strain on consumers, and social unrest meant that business activity remained constrained,” said the Bureau for Economic Research (BER).
Although business confidence edged higher in the third quarter of 2023 thanks to reduced load shedding over the period – the country is back in the throes of stage 6 load shedding, while other businesses are concerned about risks of social unrest, as optimism remains very weak.
This is according to the latest RMB/BER Business Confidence Index (BCI), which ticked higher to 33 in Q3 2023 from 27 in the second quarter. Although higher, sentiment is still very weak, with the current level of the index suggesting that two-thirds of respondents are still dissatisfied with prevailing business conditions.
The third quarter survey was conducted by the BER between 16 August and 31 August 2023. The survey covered 1,050 senior executives in the building, manufacturing, retail, wholesale, and motor trade sectors. “The challenges posed by relatively high interest rates, the resultant strain on consumers, and social unrest meant that business activity remained constrained,” said the Bureau for Economic Research (BER).
