Municipal challenges constrain investment and growth

The failure of South African municipalities to deliver on their mandates has an impact on investment and economic growth. We explored the problems and causes of these failures in a BER report released last year.

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Recent Releases

Sentiment among contractors in the civil construction sector, as measured by the FNB/BER Civil Confidence Index, remained low at 10 in 2022Q2, from 9 in 2022Q1. The current index level means that ninety per cent of respondents are dissatisfied with prevailing business conditions. Underpinning the still low confidence was poorer construction activity.

The seasonally adjusted Absa Purchasing Managers’ Index (PMI) declined to 52.2 index points in June from 54.8 in May. However, the headline PMI masks a worrying deterioration in demand and activity during the month. The business activity index signalled a contraction in output for a third consecutive month.

The RMB/BER BCI declined from 46 to 42 in the second quarter. Although manufacturers and new vehicle dealers experienced a sharp deterioration in sentiment, building contractors turned decisively more upbeat. Confidence among retailers and wholesalers remained largely unchanged at relatively high levels.

The FNB/BER Consumer Confidence Index (CCI) plunged to -25 in the second quarter of 2022, from -13 in the first quarter of the year. Bar the CCI reading of -33 in the second quarter of 2020, the current reading is the lowest in three decades and signals a marked slowdown in consumer spending in coming months.