Confidence index of the CCI: Business and manufacturing on the rise, services fall

The MCCI Business Confidence Indicator, which was conducted among companies between November 16 and December 6, 2011, show that the climate is improving in the areas of trade and manufacturing. However the service sector is idling.

However, precise Renganaden Padayachy, macro-economist at the Chamber of Commerce and Industry, the service sector is still well above the 100 basis points.

" After a decline of more than 8 points in the third quarter of this year, the composite indicator of business climate for entrepreneurs in the industry and trade off again slightly higher , "said Renganaden Padayachy during a meeting with Press this Thursday, December 15.

" In the fourth quarter of 2011, the confidence index louse this sector grew by one percent to reach 70.9 points , "he added.

It has not failed to point out that the sector remains vulnerable, although the current level of the index is well below the average of 100 basis points. Recognizing this weakness, the operators of this sector would consider, he said, to use a diversification of their activities.

" During our survey of companies, we also learned that over 30% of participants in this sector intend to recruit in the coming months , "said Renganaden Padayachy.

As regards the manufacturing sector, having declined by more than 10 points in the third quarter of this year, the confidence indicator for the industry rose 4.1% to 96.2 points.

The future for this sector looks, however, very dark. Indeed, 53.7% of operators show their pessimism and 39% provide no improvement in business over the next quarter.

However, no threat hangs level of employment. "10 of our panel of industries intend to recruit in the short to medium term, while 85% think their numbers keep," says Renganaden Padayachy.

In sum, the MCCI Business Confidence Indicator indicates that the business climate improved slightly by 1.1 points to 100.1 points to settle, which is one level higher than the long-term average of 100 points base. It is also noteworthy that this increase comes after a very poor third quarter of 2011, when the index was down 12 points.