SACOB PRESS RELEASES ARCHIVE 2006

2006 Press Releases

• Trade Conditions Survey - Dec 2006
  19 January 2007
  South African trade conditions take seasonal knock despite festive retail boom
  The conditions of trade within the South African business environment have experienced a decline in December 2006, despite an increase in retail sales, according to the latest Absa/South African Chamber of Business (SACOB) Trade Conditions Survey.
• Business Confidence Index - Dec 2006
  11 January 2007
  SACOB today released its BCI for December 2006 which was on yet another best ever level of 103.5 index points. Towards the end of 2006 SACOB’s Business Confidence Index (BCI) recovered, and measured 99.5 in October, then increased to a new high of 103.2 in November 2006.
• South African Trade Conditions Continue to Improve
  13 December 2006
  The trade conditions within the South African business environment have shown a further improvement during November after picking up sharply in the previous month, according the latest Absa/ South African Chamber of Business (SACOB) Trade Conditions Survey.
• Business Confidence Gained Substance
  5 December 2006
  SACOB today announced that 103.2 was recorded for its Business Confidence Index (BCI) in November 2006. This is a new all time high and although the October BCI improvement was regarded as temporary, it now seems to have had more substance. The previous highest level of 103.1 was registered in April 2006.
• Trade Survey October - Expectations on Trade Conditions Moderate Further
  10 November 2006
  Although trade conditions picked up strongly in October after deteriorating slightly in September 2006, trade expectations for the next six months moderated further according to the latest Absa/Sacob Trade Conditions Survey in South African released today.
• BCI October - Easing Economic Tempo
  7 November 2006
  SACOB today announced that its Business Confidence Index (BCI) increased to 99.5 in October 2006 after being in a temperate declining trend between May 2006 and September 2006. Although the increase of 1.8 index points between September and October may have been substantial, it is probably a temporary spike and does not imply the start of a renewed surge in business confidence.
• Medium Term Budget Policy Statement
  25 October 2006
  In its reaction to the Medium Term Budget Policy (MTBP) statement issued by the Minister of Finance, a spokesperson for SACOB said: "The Minister’s expenditure programme for the period provides an ‘up beat’ vision for the economy, though provision is made for responding appropriately should economic conditions falter. The expenditure programme understandably gives emphasis to social objectives and to the many infrastructural needs associated with the hosting of the 2010 FIFA World Cup."
• Trade Conditions Survey September - South African Trade Conditions Show Slight Deterioration
  13 October 2006
  The conditions of trade within the South African business environment have deteriorated slightly in September 2006 after having improved in the previous month, according to the latest Absa/South African Chamber of Business (SACOB) Trade Conditions Survey.
• BCI September - Adjusting Business Confidence
  5 October 2006
  SACOB’s Business Confidence Index for September 2006 dipped further to 97.7 from 99 in August 2006. This is the lowest level so far this year and is 5.4 index points down on the peak of 103.1 reached in April 2006. SACOB expects that business conditions might tighten towards the end of 2006 and further restrain the present business mood.
• Employment Equity Alleged Transgressions
  14 September 2006
  Commenting on the recent accusations made by the Department of Labour on Employment Equity Act transgressions, a spokesperson for SACOB said:
  Quote:"SACOB regrets the accusations and accompanying ‘naming and shaming’ measures that have led to disputes between Business and the Department of Labour. Where the alleged transgressions might be the subject of fraud, it will be for the Department to follow the normal legal procedures".
• Trade Conditions Survey August - South Africa's Trade Conditions Show Respite
  14 September 2006
  The deterioration in trade conditions experienced after May’s high, showed a respite in August 2006, according to the latest Absa/Sacob Trade Conditions Survey in South African for August 2006 released today. During August 2006, more respondents reported improved conditions compared with July. The trading environment was supported by unabated borrowing.
• BCI August - Business Confidence Remains Poised
  5 September 2006
  SACOB today released its August 2006 Business Confidence Index. Although the index declined marginally by 0.1 index point from 99.1 in July 2006 to 99.0 in August 2006, the BCI was poised over developing balance of payments constraints and the prospect of remedial policy action, both of which could affect business confidence negatively.
• Trade Conditions Survey July - South Africa's Trade Conditions Slow Further
  11 August 2006
  Fewer respondents in the Sacob/Absa Trade Conditions Survey in South African have reported an increase in business conditions in July 2006 compared with June 2006, which was significantly down on the exceptionally positive outcome of the May 2006 survey.
• BCI July - Business mood Hesitant
  3 August 2006
  Business Confidence Index (BCI) declined further by 0.3 index points from 99.4 in June 2006 to 99.1 in July 2006. There was a more balanced impact of the sub-indices between positive and negative in July, if compared to the negative bias in the June 2006 BCI.
• Trade Conditions Survey June - South Africa’sTrade Conditions Recede Somewhat
  13 July 2006
  Business trade conditions in South African have receded somewhat in June 2006 from the exceptionally positive position recorded in the previous month, according to the latest SACOB/Absa Trade Conditions Survey.
• Fuel Levy - Western Cape
  7 July 2006
  Responding to the announcement by the Western Cape MEC for Transport, a SACOB spokesperson said:
  This announcement comes as no surprise, as the issue has been the subject of discussions with the National Treasury for some years. With motorists adjusting to the recent sharp fuel price increase, the timing of the announcement is perhaps unfortunate.
• BCI June - Business Confidence Dips Further
  4 July 2006
  The SACOB Business Confidence Index (BCI) declined by two index points to 99.4 from 101.4 in May 2006 and it is the first time in 2006 that the BCI dropped below the favourable level of 100. All the ‘financial’ sub-indices turned negative and four of the seven ‘real activity’ sub-indices had a positive impact on the BCI. These developments influenced the business mood adversely and affected business behaviour.
• Strike Resolution
  22 June 2006
  Commenting on the resolution of the security industry strike, a spokesperson for SACOB said: "SACOB welcomes the end to the protracted and violent industrial action that has beset the security industry. In particular, SACOB welcomes the three year arrangement covered by the agreement. From an economic, and from a broad business perspective, the long term nature of the agreement will provide for a greater level of certainty and stability in the industry."
• Absenteeism
  19 June 2006
  In response to a query relating to the incidence of absenteeism, a spokesperson for SACOB said: "It is estimated that absenteeism could be costing the economy as much as R12 billion a year. While it is difficult to obtain satisfactory statistics on this phenomenon, there appears to be evidence pointing towards an increase in the incidence of sick leave so far this year."
• Trade Conditions Survey May - South Africa’s trade conditions solidly in a strong trajectory
  13 June 2006
  The conditions of trade within South African business have improved substantially for the month of May 2006 and continue to move deeper into positive territory, according to the latest SACOB/Absa Trade Conditions Survey.
• BCI May - Business Confidence Tested
  6 June 2006
  Despite sizeable negative movements by some of the business mood indicators during May 2006, the SACOB Business Confidence Index (BCI) was nonetheless only 1.7 points down on the 103.1 of April 2006 to register 101.4 in May 2006. Five of the thirteen sub-indices that make up the SACOB BCI made a positive contribution in May 2006; seven sub-indices negatively affected the BCI and one index remained neutral.
• Sympathy Strike
  1 June 2006
  SACOB is concerned over the extremes to which labour interests are prepared to go in order to achieve their ends. Presumably, sympathy strikes of this nature are intended to demonstrate to the country the unstoppable strength of labour interests. In this instance that unstoppable strength will bring economic hardship to many.
• Security Sector Strike
  24 May 2006
  Commenting on the threat by SATAWU to engage in secondary or sympathy related industrial action, a spokesperson for SACOB said “SACOB is extremely concerned about such threatened action and regrets the extremes to which SATAWU is prepared to go in order to achieve their ends. It would appear that in addition to tolerating violence and the destruction of property, the Union is now prepared to extend their aggressive stance to other sectors of the economy."
• Trade Conditions Survey April - Trade Conditions Positively Embedded
  11 May 2006
  Trade conditions pulled back in April 2006 as part of a normal seasonal pattern due to trading days being lost during the month of April. Trade conditions, however, are now well rooted in positive territory where they will probably remain in the first half of 2006.
• Security Sector Strike
  5 May 2006
  SACOB regrets the prolongation of the strike largely caused by different interpretations of the representation of Trade Unions in the security sector. SACOB recommends that the Department of Labour provide clarity in this regard. SACOB again urges both parties to get together in an attempt to resolve their differences.
• BCI April - Sentiment Helps Confidence
  4 May 2006
  The SACOB Business Confidence Index (BCI) seems to be finding it difficult to break away to a higher level. In April 2006 the BCI again registered 103.1 (same as January 2006) and although up from the 100.9 in March 2006, the BCI merely recovered lost ground during this period. From September 2004 to April 2006 the BCI varied by only 3.6 points – moving sideways in a limited range.
• Security Sector Strike
  3 May 2006
  SACOB regrets the prolongation of the strike by certain segments of the security industry and deplores the extent and nature of the violence that has accompanied the strike. It is hoped that the affected parties can find a suitable arbitrary mechanism that will resolve their differences in a manner that conforms to the requirements of the Labour legislation.
• Trade Conditions Survey March - Trade Conditions Advance Strongly
  11 April 2006
  Trade conditions picked up momentum between February and March 2006 and were heading solidly into positive territory for the first half of 2006. There was a strong surge in sales volumes while new orders, inventories and supplier deliveries also improved during March but backlogs on orders picked up slightly. Job prospects are still positive but moved sideways.
• SATAWU Security Sector Dispute
  10 April 2006
  SACOB notes that the interdict granted by the Labour Court over the illegality of the industrial action by SATAWU was rescinded on 08 April. SACOB is concerned about the manner in which this dispute was handled and urges both parties to return to the negotiating table to address the current dispute as industrial action will not serve anyone’s interest.
• COSATU Section 77 Notice
  7 April 2006
  In response to COSATU’s intention to continue with protest action during four specific days in May, a spokesperson for SACOB said: “SACOB accepts that the objective of the protest is to highlight the general concern over unemployment. However the chamber does not believe that such protest action fulfills a constructive solution to the problem. The ASGISA program is designed to work towards such a solution and certainly does not include disruptions in the form of industrial action. Protests of this nature can only damage the economy and add to general impoverishment.”
• Business Confidence Preserved
  4 April 2006
  Although the SACOB BCI rose by 0.8 points from February 2006 to 100.9 in March 2006, it was still short of the record level registered in January 2006. It is, however, important to note that key sub-indices such as those on the exchange rate, inflation and manufacturing output made negative contributions to the BCI in March 2006.
• Cargo Hub for Upington
  29 March 2006
  A feasibility study undertaken by the Khara Hais Municipality (Upington) shows that sufficient cargo is generated in the Western and Eastern regions of South Africa and Namibia to warrant the establishment of a cargo hub at Upington.
• Johannesburg Airport Heist
  27 March 2006
  SACOB believes that airport security should feature high on the order of priorities for SAA, ACSA and SAPS. The Chamber trusts that this consideration will be the foremost subject of the meetings that are to take place between these three agencies and that a satisfactory mechanism will be introduced to ensure that a repetition of the recent robbery at the Johannesburg International Airport will be minimized.
• Security Sector Strike
  24 March 2006
  Enquiries directed to members indicate that the security sector strike caused minimal disruption to normal company operations. However reports of intimidation of security personnel are significant.
• SACOB Reaction to Transport Disruptions
  14 March 2006
  SACOB is concerned that the strike action being carried out by SATAWU and other unions will have a negative impact on the economy of approximately R170 000 000 (one hundred and seventy million) per day.
• Trade Conditions Survey Feb - Trade Conditions Bounce Back
  14 March 2006
  The SA Trade Activity Index (SATAI) rebounded in February 2006 after dipping in December 2005 and in January 2006. It would appear that trade conditions are heading deeper into positive territory in the first half of 2006.
• BCI Feb - Business Confidence Perturbed
  7 March 2006
  SACOB’s Business Confidence Index (BCI) declined to 100.1 in February 2006. The decline of 3 points between January and February 2006 is the highest monthly decline in the BCI since October 2004, when the index dropped by 3.5 index points.
• Transnet Strike – Estimated Economic Effect
  24 February 2006
  SACOB wishes to correct an error that appears in today’s issue of The Star newspaper. The estimate made by Business is that the cost of the strike is R70 million per day and not R7 million per day. The Chief Operating Officer of BUSA, Vic van Vuuren, supports this notice of correction.
• Electricity Cuts
  23 February 2006
  “Business is concerned over recent protracted power cuts that have been particularly severe in the Western Cape. These power cuts have had very serious effects on business activity. SACOB is seeking an urgent meeting with the CEO of ESKOM in order to obtain assurances over the remedial measures being put in place and to determine the extent to which business can assist in being part of any solution to the problem.”
• SACOB Response to Budget Speech
  15 February 2006
  SACOB welcomes the positive message conveyed in the Minister’s Budget though must express its disappointment over the failure to adjust the corporate tax rates downwards, albeit that there has been a repeal of the RSC levy. Concern might be voiced over the projected ratio of tax to GDP which appears to be edging upwards from the previous 25 percent level.
• Trade Conditions Survey January - Softer Trade Conditions
  9 February 2006
  The normal seasonal downturn in trade conditions occurred in January 2006, but this was less pronounced than in previous years. While trade conditions gradually improved up to November 2005, the SA Trade Activity Index (SATAI) has been in negative territory for two consecutive months. Although the expectations for trade activity in 2006 remains positive, the January Survey results imply that trade conditions may not be as vigorous as they were in 2004 and 2005.
• BCI January - Lopsided Business Confidence
  7 February 2006
  SACOB’s Business Confidence Index (BCI) registered 131 in January 2006 after measuring 129.4 in December 2005. This is the highest level ever recorded for the BCI and is 0.1 index point higher than the record level of 130.9 in September 2004. The BCI has increased by 4% since September 2005 and has been especially progressive during December 2005 and January 2006. Short-term financial market assessments made an important impact on the business mood at the start of 2006.
• President’s State of the Nation Address
  3 February 2006
  In its response to the President’s State of the Nation address to Parliament a spokesperson for SACOB said: "SACOB welcomes the positive economic perspective contained in the President’s State of the Nation Address. The proposed interventions under the Accelerated & Shared Growth Initiative (ASGI) that by way of investment undertakings, capacity enhancement (particularly in skills development), and overcoming the many and varied constraints on growth will provide the impetus required for the attainment and sustainability of a higher economic growth path."
• Trade Survey December - Trade conditions Mellow Somewhat
  12 January 2005
  Trade conditions subsided somewhat in December 2005. The index dipped on an exceptional positive November 2005 outlook of 55 index points into negative territory with the Trade Activity Index (TAI) at 49 in December 2005. A similar seasonal pattern occurred in 2004 but then the TAI retracted only four index points from the November index compared to six points in 2005. Trade conditions subsided somewhat in December 2005. The index dipped on an exceptional positive November 2005 outlook of 55 index points into negative territory with the Trade Activity Index (TAI) at 49 in December 2005. A similar seasonal pattern occurred in 2004 but then the TAI retracted only four index points from the November index compared to six points in 2005.
• BCI December - Business Confidence Prepared for 2006
  5 January 2005
  The Business Confidence Index (BCI) registered 129.4 in December 2005 after measuring 126.5 in November 2005. This is the highest level for the BCI in 2005 and 4.9 index points above last year’s December level. The BCI increased by 3.6 index points during the course of 2005 compared to 2.2 in 2004, 16.7 in 2003 and 3.2 index points in 2002.