Business confidence in South Africa has tentatively improved after the formation of the government of national unity (GNU), according to a leading survey.
Following a five-point increase in the second quarter, the Rand Merchant Bank/Bureau of Economic Research Business Confidence Index (BCI) rose by another three points to reach 38 in the third quarter of 2024, reflecting a cautious optimism about improving business conditions.
Of the five sectors making up the BCI, retailers and new vehicle dealers showed an improvement in confidence, manufacturing remained unchanged, and wholesalers and building contractors saw a decline in confidence (although remaining at relatively high levels).
New vehicle dealers registered the biggest increase in confidence, rising by 17 points to 27 in the third quarter, a one-year high. Retail trader confidence improved from its long-term average of 39 index points to an above average 45 index points in the third quarter.
Although respondents still noted constraints, especially weak demand, they were less negative about current conditions and encouragingly, were more upbeat about business conditions going forward, the report found.
