Disrupting the Business Climate

sacciSACCI today released the SACCI Business Confidence Index (BCI) for August 2016 at its Offices in Rosebank, Johannesburg.

The SACCI Business Confidence Index (BCI) declined from the 96.0 of July 2016 and recorded 92.9 in August 2016. This level represents a decline of 3.1 index points from last month BCI and was 4.7 index points lower than in August 2015. Events beyond normal economic activity and business matters disrupted the turnaround in June and July 2016.

There was more negativity in the real business environment in August 2016 compared to July 2016 where five of the seven real sub-indices either declined or remained unchanged month-on-month. The month-on-month financial climate also became more uncertain with five of the six financial sub-indices remaining unchanged or declining in August 2016. The annual BCI comparison in August 2016 suggests an even tighter economic and business climate as eleven of the thirteen sub-indices were in the red.

The benign monthly positive contributions to the BCI mainly came from the number of new vehicles sold and consumer inflation excluding petrol, food and non-alcoholic beverage. Merchandise export and import volumes, and real retail sales had the largest negative month-on-month effects in August 2016. The largest negative year-on-year contribution to the BCI came from merchandise import volumes, followed by merchandise export volumes and real financing costs. A marginal positive impact to the business climate compared to August 2015 came from the US dollar gold and platinum prices, and manufacturing output.

During August 2016, South Africa experienced non-economic and non-business events that affected the business climate both negatively and positively. Although the economy remained under pressure and its performance was subdued, there were economic developments that could positively contribute to setting the economy on a recovery path. The conducting of free and fair local government elections was experienced as a positive event and enhanced the economic and business climate.

The positive effects of the local government elections improved the prospects for the economy and service delivery on local government level. Sentiment surrounding important financial institutions like the Treasury and the Reserve Bank, had a negative effect on short-term developments in the financial markets. In order to promote a sound economic and business climate, it is imperative to resolve intrigues that could hamper capital accumulation, growth and employment creation. Certainty on policy direction as a key element of business confidence, should be re-established.



Latest


16 Feb 2021
Transition management services partnership announced

Standard Bank has signed a memorandum of understanding (MoU) with Chicago-headquartered financial services company Northern Trust, to partner on the…

Transition management services partnership announced

Standard Bank has signed a memorandum of understanding (MoU) with Chicago-headquartered financial services company Northern Trust, to partner on the delivery of transition management services across Southern Africa. Under the partnership, Standard Bank’s clients will gain access to Northern Trust’s full suite of transition management services. Transition Management is a…

16 Feb 2021
Tax free wealth creation with property funds

By Liliane Barnard, CEO and Portfolio Manager at Metope Investment Managers, and Aimee Glisson, Director: Operations, Performance & Risk at…

Tax free wealth creation with property funds

By Liliane Barnard, CEO and Portfolio Manager at Metope Investment Managers, and Aimee Glisson, Director: Operations, Performance & Risk at Metope Investment Managers The tax year, along with the deadline for an investor’s maximum R36 000 annual tax-free savings account contribution, comes to an end on the 28 February 2021. Investors…

16 Feb 2021
Why multi-manager investing is popular

Multi-management has been around for over two decades. This investment management approach is popular among many investors because it promises…

Why multi-manager investing is popular

Multi-management has been around for over two decades. This investment management approach is popular among many investors because it promises to deliver smoother, more consistent investment returns, despite cyclical turbulence of financial markets. Given last year’s drastic swings in financial markets and continued uncertainty on how the Covid pandemic will…

16 Feb 2021
Momentum Health Solutions unpacks COVID-19 vaccine roll-out plan

Momentum Health Solutions announced its COVID-19 vaccine roll-out strategy and how it intends to support both its members, as well…

Momentum Health Solutions unpacks COVID-19 vaccine roll-out plan

Momentum Health Solutions announced its COVID-19 vaccine roll-out strategy and how it intends to support both its members, as well as the uncovered population, in being vaccinated. As the COVID-19 virus continues to spread, a third wave is imminent, should the vaccination rollout not commence soon. Speaking at a recent…


Top stories


10 Sep 2020
How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key…

How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key that dubbed America “The land of the free”, which stuck, to the unforgettable Mel Gibson monologue where an army of painted Scots were willing to trade their lives for the…

13 Apr 2020
Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19…

Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19 environment and what form a global market recovery will take.

13 Apr 2020
SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The…

SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The draft Bill, together with its explanatory memorandum, provides clarity with regards the tax relief measures President Cyril Ramaphosa announced on 23 March.

10 Apr 2020
When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved…

When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved to be most enterprising in acclimatising to challenges as they arise.


Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za