The RMB/BER Business Confidence Index (BCI) eased slightly further from 42 to 39 in the third quarter – meaning that 61% of respondents are unsatisfied with prevailing business conditions.
While, on the face of it, this is a disappointing outcome, the underlying picture is not as bad as the lower BCI implies, according to financial services company RMB.
“Improved turnover enabled such retailers to handle higher operating costs which, in turn, propped up profitability and confidence.” By contrast, sentiment among building contractors deteriorated by 17 points to 29 in the third quarter. Simultaneously, underlying activity in the building, as well as the manufacturing sector, is stronger than third quarter confidence figures seem to imply. Notable too is the fact that fixed investment in manufacturing, after a temporary drop in the second quarter, resumed its upward trajectory to a level that is now close to its long-term average.
Minister in the Presidency, Mondli Gungubele, meanwhile, has expressed concern at the latest GDP number.
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