Service with a smile? Macro and consumer insights webinar

The BER takes pleasure in inviting you to a webinar about our quarterly surveys of the services sector to be held on 27 September 2022 (10h00-11h00). Services play a critical role in South Africa’s economy: it accounts for 70% of GDP and 75% of employment. The BER’s quarterly surveys of the services sector (retail, and other services) reveal trends and turning points before the official data becomes available. There are only limited seats available for this event and we urge you to sign up as soon as possible to avoid disappointment. Register online to reserve your place.

Get it here

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.

Following a tough start to the third quarter, an easing in the intensity of load-shedding meant that conditions in the manufacturing sector improved in August 2022 relative to July. The seasonally adjusted Absa Purchasing Managers’ Index (PMI) ticked up to 52.1 points in August from 47.6 in the prior month.

The RMB/BER Business Confidence Index (BCI) eased slightly further from 42 to 39 in the third quarter. Confidence among retailers and wholesalers remained comparatively high, while a notable improvement in sentiment among new vehicle dealers partly offset a 17-point deterioration in building confidence. The manufacturing BCI remained at a low level. While the third quarter drop in the RMB/BER BCI is disappointing, the other survey results indicate that another outright (quarter-on-quarter) contraction in real GDP is unlikely.

After plunging from -13 to -25 during the second quarter of 2022, the FNB/BER Consumer Confidence Index (CCI) clawed back 5 index points to reach -20 in the third quarter. Consumer sentiment remains extremely depressed and signals a substantial deceleration in real consumer spending growth relative to the robust rates recorded at the start of the year.