Business tendency surveys are a valuable way to predict economic trends before official statistics are released. Conducted by the Bureau for Economic Research for 70 years in South Africa, these surveys offer insights into business dynamics and sentiment. The most crucial question asked is whether respondents are satisfied with prevailing business conditions, providing a true measure of business sentiment.
Changes in sentiment can indicate shifts in the economy, influencing investment intentions and job creation. The newly formed government in South Africa aims to address structural constraints, and the survey will help assess the success of these reforms. The Business Confidence Index, compiled from specific sector responses, serves as an indicator for overall economic changes.
Manufacturers, retailers, and other key sectors are surveyed, with questions about constraints to business conditions providing long-term data. The political climate has been a significant constraint, but improvements have been seen since the government change. The survey also highlights issues such as disruptions at local ports and power outages.
The data from these surveys is crucial for understanding business dynamics, especially during periods of uncertainty like the COVID-19 pandemic.