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).
Less talk more action say CEO’s
The Merchantec CEO Confidence Index recorded a 0.33% increase in CEO confidence in Q3 of 2019 to a score of 45.9, which is below the neutral score line of 50 points. The index remains for the most part unchanged. The contributor this slight movement was the consumer goods sector, who seem a little more optimistic as we head into Q4.
CEO’s are calling for decisive action regarding corruption. Load-shedding is back in the spot light. CEO’s are extremely concerned about Eskom’s debt and its inability to foresee issues with regard to its production and government not taking a hard line with respect to non-payment for electricity. CEO’s further stress that there is too much talk and not enough concrete steps to make tough decisions. SARS shortfall on revenue is also a concern. CEO’s are perturbed over the “brain drain” and the fact that this contributes to the SARS shortfall.
55% of CEO’s indicated that they disagree with the Presidents statement that most of the people he speaks to recognise that we have made progress in turning our country around.
Basic Resources went down in confidence to a score of 30.00 points, a 45.5% decrease.
Consumer Goods showed the largest increase of 36.25%, moving to a score of 53.13. The increase in overall confidence was primarily driven by the economic conditions.
Consumer Services increased to 47.50 a 0.4% increase.
Financials decreased by 1.3%, practically no change in this sector sentiment.
Industrials increase by 12.9%, moving to a score of 46.50. The decrease in overall confidence was primarily driven by economic conditions.
Technology recorded an increase of 17.9%, this was driven predominantly by the ability to secure debt.
To view all previous quarterly reports, please visit Merchantec CEO Confidence Index.
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.