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BCI surprises by staying unchanged...No 15

Date Uploaded: November 26 2008 12:15


The RMB/BER BCI remained steady - a level of 33 was registered in the fourth quarter compared to 34 in the third quarter. Since the previous survey, the financial market turmoil increased exponentially and the adverse impact of earlier interest rate increases and higher inflation on the growth of the real economy in South Africa became more apparent. We do not know why these developments did not reduce business confidence as in the past, but speculate that some business people have become slow to adjust their views after years of sustained high growth and the financial market turmoil appears too far removed to directly affect local businesses adversely. The most recent results point to another dismal performance of the economy during 08Q4.