Specific sectors saw varying changes in Q2 of 2024:
Materials increased by 6% to 50.71 points, driven by industry growth expectations.
Information Technology increased to a score of 59.17 points, reflecting an 11% increase.
Consumer Staples increased to 59.58 a 31% increase.
Consumer Discretionary decreased by 4%, mainly attributed to economic conditions.
Financials increased by 8%, moving to a score of 59.76 from 55.54 in Q1 of 2024.
Industrials increased by 13%, moving to a score of 57.98.
Communications Services remained flat at a score of 85 points.
Health Care increased by 10%, driven predominantly by the ability to secure debt.
Real Estate increased by 28%, driven by increased confidence relating to industry growth expectations.
Merchantec Capital’s latest CEO Confidence Index provides an insightful perspective on South Africa’s democratic function, with many CEOs maintaining a cautiously optimistic outlook, influenced by political stability and the absence of loadshedding.
The recent formation of the Government of National Unity (GNU) cabinet has sparked hopes for better governance, with CEOs noting significant operational benefits from recent political changes and uninterrupted power supply.
However, concerns persist about the coalition’s effectiveness and adherence to constitutional mandates, with some CEOs skeptical about the potential challenges and economic impacts of race-based policies. Low voter turnout and internal political dynamics are also seen as potential threats to the stability and effectiveness of the GNU.
