South Africa's Q2 business confidence falls 6 points to 39
June 13 (Reuters) - A South African business confidence
index fell in the second quarter by 6 points, a survey showed on
Wednesday, a sign the economy was struggling amid hopes that
President Cyril Ramaphosa would help revitalise the country and
The Rand Merchant Bank (RMB) business confidence index
compiled by the Bureau for Economic Research fell to 39 points
in the second quarter from 45 points in the first quarter,
falling further below the 50-mark separating the net positive
and negative territories.
However, RMB's chief economist, Ettienne Le Roux, said that
the trend in business confidence remains upwards, even if only
tentatively so, despite the second-quarter decline.
Le Roux said that it was important that the political and
policy factors currently weighing down on confidence were
First-quarter business confidence jumped 11 points, mainly
because of the change in the country's political leadership in
February, when Ramaphosa was elected, RMB said in a statement.
But South Africa suffered its worst quarterly contraction in
nine years in the first quarter. Gross domestic product shrank
2.2 percent, led by a slowdown in agriculture and mining, after
expanding 3.1 percent in the final quarter of last year,
Statistics South Africa said.
Earlier this month, The South African Chamber of Commerce
and Industry reported its monthly business confidence index fell
to 94 in May from 96 in April as trade declined and consumer
inflation rose after an increase in Value Added Tax
(Reporting By Justin George Varghese and Arathy S Nair in
Bengaluru, editing by Larry King)
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