Confidence index declines further
The third quarter results of the Agbiz/ IDC Agribusiness Confidence Index underline the sector’s reputation of being countercyclical. Although confidence in other sectors of the economy remains subdued, the agribusiness sector is still optimistic about business conditions in the country, albeit declining marginally in the third quarter. After declining by one index point in the second quarter of this year, the Agbiz/idc Agribusiness Confidence Index declined further by two Index points in the third quarter to 54 points.
Among the ten sub-indices making up the Agbiz/idc Agribusiness Confidence Index, the quarterly decline was broad based, except for turnover and capital investment.
Although there are several factors driving sentiment of the other sub-indices, the unfavourable weather conditions in the Western Cape and relatively lower global demand for maize exports were key drivers of the decline in sentiment.¡
The articles above have been written or compiled by the Editor and do not necessarily represent the views, opinions or positions of SAPA.