Investor activity extends Index?s winning streak
THE IJG Business Climate Index ended 2011 by inching upwards by 0.8 basis points in December ? the seventh month of consecutive rises in the index.
The business climate improved on the back of strong investor activity, while the Leading Indicator continued to point towards more favourable business conditions six months down the line. The Investment Index rose by 3.7 to 162.2 basis points as commercial vehicle sales soared to 748 units sold through December compared to 680 units in November. The rise in commercial vehicle sales helped to push credit to businesses up to N$15.6 billion.
Downside risks remain ? in particular metal futures prices could be held back by the projected slowdown in global growth rates in 2012.
Despite European debt concerns and declines in European leading indicators, the Export Index remained in positive territory increasing by 2.3 basis points through the month. Copper and zinc prices were down 3.5% and 11.3% respectively, while the uranium price rose by 1.4%.
However, the weaker rand did soften the declines in local currency terms. The Export Index was supported by the rebound in hake prices which rose by 11% and thus recovered from their November decline.
As for the meat sector, beef prices closed the year on a strong note with prices up 4% month on month on the back of tight supplies and strong marketing in South Africa. Consumers were once again on the back foot despite favourable inflation numbers and interest rates. Confidence levels were set back by the weaker local currency, which meant consumers had to pay more for imports, while passenger vehicle sales fell.
Consumer credit did however increase on the back of strong mortgage advances, but this was not enough to lift consumer confidence, as the Consumption Index fell 2.9 basis points.
? IJG/IPPR
The business climate improved on the back of strong investor activity, while the Leading Indicator continued to point towards more favourable business conditions six months down the line. The Investment Index rose by 3.7 to 162.2 basis points as commercial vehicle sales soared to 748 units sold through December compared to 680 units in November. The rise in commercial vehicle sales helped to push credit to businesses up to N$15.6 billion.
Downside risks remain ? in particular metal futures prices could be held back by the projected slowdown in global growth rates in 2012.
Despite European debt concerns and declines in European leading indicators, the Export Index remained in positive territory increasing by 2.3 basis points through the month. Copper and zinc prices were down 3.5% and 11.3% respectively, while the uranium price rose by 1.4%.
However, the weaker rand did soften the declines in local currency terms. The Export Index was supported by the rebound in hake prices which rose by 11% and thus recovered from their November decline.
As for the meat sector, beef prices closed the year on a strong note with prices up 4% month on month on the back of tight supplies and strong marketing in South Africa. Consumers were once again on the back foot despite favourable inflation numbers and interest rates. Confidence levels were set back by the weaker local currency, which meant consumers had to pay more for imports, while passenger vehicle sales fell.
Consumer credit did however increase on the back of strong mortgage advances, but this was not enough to lift consumer confidence, as the Consumption Index fell 2.9 basis points.
? IJG/IPPR
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