Business confidence index hits lowest in 35-year history

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Business confidence index hits lowest in 35-year history
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Though SA entered a marginally less restricted lockdown at the beginning of May, the effects on the economy are still expected to be deep

Business confidence fell to the lowest levels ever recorded during April as the cumulative effects of the coronavirus lockdown, ratings downgrades and an overstretched fiscus took hold in an economy already confronting recession.

Though SA entered a marginally less restricted level 4 lockdown at the beginning of May, the effects on the economy are still expected to be deep. “SA’s challenges are compounded by four constraints that affect the economy at present — recessionary economic conditions; the Covid-19 lockdown; an over compromised fiscal position, and the downgrading of the SA's sovereign credit rating to junk status,” the chamber said.

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