The RMB/BER business confidence index in South Africa rose for the first time in two years to 26 in Q4 2019 after hitting a 20-year low of 21 in the prior period, as sentiment improved among constructors, manufacturers and retailers. Still, confidence remained stuck in negative territory, with the index well below the 3-year high of 44 reached in Q1 2018 when Cyril Ramaphosa took over as president of the country. "At current levels, business confidence remains consistent with an economy bumbling along in near recession-like conditions,” RMB said. Business Confidence in South Africa averaged 43.43 Index Points from 1975 until 2019, reaching an all time high of 92 Index Points in the third quarter of 1980 and a record low of 12 Index Points in the fourth quarter of 1977. source: Bureau for Economic Research (BER)
Business Confidence in South Africa is expected to be 16.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Business Confidence in South Africa to stand at 18.00 in 12 months time. In the long-term, the South Africa Business Confidence is projected to trend around 15.00 points in 2020, according to our econometric models.
South Africa Business Confidence
In South Africa, the BER Business Confidence Index covers 1,400 business people in the building sector, 1,400 in the trade sector and 1,000 in manufacturing. The survey assesses the level of optimism that senior executives in the companies have about current and expected developments regarding sales, orders, employment, inventories and selling prices. The index varies on a scale of 0 to 100, where 0 indicates an extreme lack of confidence, 50 neutrality and 100 extreme confidence.