The Merchantec CEO Confidence Index recorded a 4% decrease in CEO confidence in Q4 of 2018 to a score of 49.0 which is just below the neutral score line of 50 points. The largest contributor to this decrease in confidence was the planned level of investment across all sectors. Basic resources, consumer services and technology have had marginal movement in confidence this quarter.
Next year’s national election is on the lips and minds of most CEO’s as we approach 2019 with significant uncertainty. CEO’s expect that the economy will turn the corner a few months after the election, provided that President Ramaphosa gets to serve his first official term in office. There is belief amongst CEO’s that The President, is taking bold steps to unbundle State Capture and that he is trying to weed out corruption. Whilst this plays out in the political arena, CEO’s have indicated that they are holding back on further capital investment and are considering re-structuring their operations to steer their business through political and economic unpredictability.
Please see the full press release on Merchantec Capital CEO Confidence Index Q4 2018 Press Release v1.