CEO Confidence

  • CEO CONFIDENCE
  • RESULTS
    • 2019
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    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
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    • 2009

2018

Q4 2018

Press

CEO CONFIDENCE INDEX

The Merchantec Capital CEO Confidence Index is a unique economic measure of the confidence of CEOs across the South African business landscape.

Gain insights into intended corporate hiring, capital and debt raising, Capex and future investments of South African companies and their leaders.

The questionnaire aggregates responses from over 1,000 CEOs of companies in both the listed and private environments. The Index therefore provides a comprehensive outlook of the South African economy going forward and is a leading indicator of the perceptions of business Executives.

The Merchantec Capital CEO Confidence Index was first released in Q2 2009 and is prepared on a quarterly basis.

Guest commentary from prominent CEOs including Mark Smith (FoneWorx Holdings Limited), Craig Venter (Allied Technologies Limited), Wayne Hook (Spar Group Limited) and Bernie Krone (EsorFranki Limited).

Q1 2019
Light at the end of the election?

The Merchantec CEO Confidence Index recorded an 11.6% decrease in CEO confidence in Q1 of 2019 to a score of 43.3 which is below the neutral score line of 50 points. The largest contributor to this decrease in confidence was economic conditions across all sectors. Consumer goods and technology sectors had the most significant drop in confidence this quarter.

For the last year, the same concerns have been expressed by CEO’s. The trend in comments remain the same for the last 4 quarterly surveys being, political uncertainty, lack of clarity from government on economic policies, concerns around Eskom & stability of power supply, rising cost of fuel, no significant gains in bringing the perpetrators of fraud to book, mixed messages from the ruling party regarding “the land issue” and the ambiguity surrounding the mining charter. Some CEO’s said that the election will not bring immediate change and that it will take at least a year for new policy implementation, for now, they are just managing risk. The consensus view amongst CEO’s is that whilst everyone awaits the outcome of the election, consumer spending has halted, which has resulted in a knock-on effect on business confidence.

61% of CEO’s indicated that they are waiting for the outcome of the election before further investing in their businesses. 39% of CEO’s said they are not waiting for the results which eludes to business as usual sentiment and/or indifference of CEO’s with the current state of SA’s political process.

Basic Resources went down to a score of 52.50 points, a 4.5% decrease.

Consumer Goods decreased by 21.3%, moving to a score of 40. The decrease in overall confidence was primarily driven by economic conditions and levels of planned investment.

Consumer Services increased to 42.24 a 7.3% increase.

Financials increased by 5.8%, this was mainly attributed to industry growth.

Industrials decreased by 13%, moving to a score of 42.54 from 48.90 in Q4 of 2018. The decrease in overall confidence was primarily driven by economic conditions.

Technology recorded the largest decrease of 41.6%, this was driven predominantly by economic conditions and the ability to secure debt.

To view all previous quarterly reports, please visit Merchantec CEO Confidence.

More about the Merchantec CEO Confidence Index

The Merchantec CEO Confidence Index, which consists of five components, collates views from CEOs of top South African companies and therefore provides a leading indicator into how business leaders perceive local market conditions and the economy going forward.

The Merchantec CEO Confidence Index is a copyright report prepared quarterly by Merchantec Capital. The survey collates responses from over 1 000 top CEOs, from the listed and non-listed environment.

About Merchantec Capital

Merchantec is a leading independent corporate finance, equity, and debt sponsor, and research and business advisory company in South Africa, with offices in Johannesburg, Cape Town, and Windhoek, Namibia. Our team will guide you through relevant regulations, giving you comprehensive advice, and helping you structure and implement the most complex business transactions, from JSE and NSX listings to mergers and acquisitions, equity and debt capital raising, valuations, and BEE structuring. With our partner associations, we also offer corporate governance and secretarial services, as well as some of the most widely respected research reports in the industry. We will help you grow your business.

CEO CONFIDENCE INDEX 2019

Q1: 2019Q2: 2019

 
Q3: 2019Q4: 2019
  

CEO CONFIDENCE INDEX 2018

Q1: 2018Q2: 2018


Q3: 2018Q4: 2018



CEO CONFIDENCE INDEX 2017

Q1: 2017Q2: 2017


Q3: 2017Q4: 2017


CEO CONFIDENCE INDEX 2016

Q1: 2016Q2: 2016


Q3: 2016Q4: 2016


CEO CONFIDENCE INDEX 2015

Q1: 2015Q2: 2015


Q3: 2015Q4: 2015


CEO CONFIDENCE INDEX 2014

Q1: 2014Q2: 2014


Q3: 2014 

 

CEO CONFIDENCE INDEX 2013

Q1: 2013Q2: 2013


Q3: 2013Q4: 2013


CEO CONFIDENCE INDEX 2012

Q1: 2012Q2: 2012


Q3: 2012Q4: 2012


CEO CONFIDENCE INDEX 2011

 Q2: 2011



Q3: 2011Q4: 2011


CEO CONFIDENCE INDEX 2010

Q1: 2010Q2: 2010


Q3: 2010Q4: 2010


CEO CONFIDENCE INDEX 2009

 Q2: 2009



Q3: 2009Q4: 2009


IN THE MEDIA