JOHANNESBURG, Nov. 25 (Xinhua) -- Bureau of Economic Research from South Africa's Rand Merchant Bank (RMB) released Business Confidence Index (BCI) on Wednesday, showing that the BCI increased in the fourth quarter of 2020 to 40 from 24, the highest level since the second quarter of 2018.
The RMB interviewed 1,800 executives from building, manufacturing, retail, wholesale and motor trade sectors between Oct. 5 to Nov. 16.
According to the report, all sectors saw an increase in confidence index.
Retail increased from 36 to 50, wholesale from 33 to 59, new vehicles dealer from 16 to 41 and manufacturing from 22 to 31. Building increased from 14 to 21.
"Although the surge in business confidence is encouraging, it only signifies an economy that's out of intensive care, and not out of high care," said RMB chief economist Ettienne Le Roux.
During the COVID-19 induced lockdown, the BCI declined to five in the second quarter of 2020.
"Indeed, while the easing of lockdown restrictions in recent months has led to a resurgence in activity, the tempo of growth in 2021 and beyond remains highly uncertain," he said.
Roux stated that they are hoping that the confidence will last and not temporary as people are coming out of strict lockdown.
"A durable recovery of the global economy, especially as the vaccine is rolled out, and continued high prices and strong demand for South Africa's mineral exports, as well as the resumption of international travel, will surely bolster the local economy," he said. Enditem