The 2023 fourth quarter Business Expectation Survey results report has been released. The results of the Report indicate indicates that firms are more optimistic about business conditions in the fourth quarter compared to the previous survey (third quarter of 2023). The businesses expect inflation to remain within the Bank’s 3 – 6 percent objective range in 2023 and 2024. Firms also anticipate improvement in output of the Mining and Quarrying; Manufacturing; Agriculture; Retail Accommodation, Transport and Communications; and Finance, Professional and Administrative Activities sectors, and this has a positive impact on aggregate domestic economic performance in the fourth quarter of 2023. However, firms anticipate lending rates to remain elevated across all markets (Domestic, South Africa and Elsewhere), following maintenance of high interest rates by central banks amid elevated inflation. Moreover, firms expect cost pressures to be high in the fourth quarter of 2023, mainly due to supply constraints arising from the Ukraine-Russia and Israel-Hamas wars.
The full report is attached below: