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FINANCE: Comments on SARS Trade Data
Recent Western Cape Business News
“South Africa’s trade balance for August 2016 narrowed to a deficit of R-8.5bn following July’s revised surplus of R5bn. The trade account’s year to date position has improved to R7.4bn when comparing it to August 2015 (Deficit of R-35.1bn). A trade deficit was not in line with market expectations." writes Karl Götte.
“The Business Confidence Index for the third quarter in 2016 improved from 32 index points in the second quarter to 42 index points. Increasing business activity and profitability in some sectors played a role in supporting the improved confidence. The confidence in retail improved from 26 to 43 index points in due to the mood of retailers of non-durable goods such as food and groceries. Wholesale confidence increased from 47 to 56 points as export sales improved. It is expected that export conditions will continue to improve into the fourth quarter. However, sentiments are that this confidence could be short-lived and may not signify the start of an up-cycle. There are still concerns about a possible credit rating downgrade as ratings agencies have been in the country recently to review the country’s performance.”
“South Africa avoided a technical recession in the second quarter which saw GDP growing by 3.3% following a 1.2% contraction in the first quarter. The agriculture, forestry and fishing sector has declined for a sixth consecutive quarter, signalling major challenges in the sector which would have an impact on employment numbers.”
“Businesses face challenging market conditions in a low-growth environment which has been marked by weak household demand, which managed to grow only by 0.8% in the first half of the year. Global uncertainty is also impacting investment uncertainty within South African markets. Times are challenging and running a business is becoming even more difficult, but there is potential to grow. Given these challenges, businesses will then be forced to consider optimal strategies for managing their working capital value chain to improve liquidity. Businesses would need to seek the advice of institutions that provide these solutions to plug the liquidity gap.”
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