The SACCI Business Confidence Index (BCI) for February 2014 was released today at the SACCI Offices in Rosebank, Johannesburg.
The SACCI Business Confidence Index (BCI) clawed back the 1.4 index points lost in January 2014 and increased from 90.5 in January 2014 to 91.9 in February 2014. This was still 1.1 index points below the February 2013 level.
Six of the thirteen sub-indices from which the BCI is compiled improved between January and February 2014, with three sub-indices unchanged and four declining. On a year-to-year basis the majority (9) of the BCI sub-indices declined in February 2014, three were positive and one was unchanged.
Economic activity failed to gather pace and the year-on-year data supports only a marginal improvement in February 2014 as compared to January 2014. A tighter monetary environment characterised by rising interest rates and cost pressures further impedes real economic activity. Although global markets and developed economies have shown signs of recovering, this momentum has yet to benefit the South African economy.
There are no signs at this stage that Budget 2014 and the State of the Nation Address had any distinct effect on the business climate or the business mood. No material changes took place in February 2014 that would either positively or negatively influence the business environment, but implementation of the economic support pledged in the budget and an improved local economic performance will undoubtedly enhance business and investor confidence.
For a full background to this month’s SACCI BCI see the Economic Commentary in the BCI report on www.sacci.org.za.