Business confidence lifts on election sentiment

Just a day before South Africans head to the polls to vote in the general election, a report showed that business confidence picked up on promises of economic growth and job creation.

The index, among other things, is generally regarded as a dip-stick of business sentiment in the country. Sentiment lifted at the start of 2018 on expectations of better business prospects following the election of Cyril Ramaphosa as ANC president. The index, however, has fallen significantly in the context of sluggish economic conditions and continued political uncertainty.

Five of the 13 sub-indices of the BCI improved from March while five remained unchanged, and three declined. The five that improved were the rand exchange rate against the major trading and investment currencies; higher share prices on the JSE; increased real value of building plans passed; real retail sales; and merchandise import volumes.

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