Merchantec CEO Confidence Upswings by 13% in Q2 2024 Amid Economic and Political Optimism in South Africa

The Merchantec CEO Confidence Index recorded a 13% increase in CEO confidence, rising to a score of 51.4. This improvement was driven by a 24% increase in the Consumer Staples sector and the recent absence of loadshedding.

The Index has experienced notable fluctuations over the past few years. It started at 43.33 points in Q1 2019, showed modest gains, then dropped to 39.9 by the end of that year.

A strong recovery in 2021 saw the index peak at 58.4 in Q4. In 2022, it started high at 57.0, dipped to 47.9 in Q2, then recovered to 54.6 in Q3, ending at 52.6 in Q4.

In 2023, it started at 44.4, gradually climbed to 51.4 by year’s end, and continued this upward trend into 2024, starting at 45.4 in Q1. These changes indicate a pattern of cautious optimism among CEOs, influenced by varying market conditions and economic pressures.

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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.

More about the Merchantec CEO Confidence Index

The Merchantec CEO Confidence Index, which consists of five components, collates views from CEOs of top South African companies and therefore provides a leading indicator into how business leaders perceive local market conditions and the economy going forward.

The Merchantec CEO Confidence Index is a copyright report prepared quarterly by Merchantec Capital. The survey collates responses from over 1 000 top CEOs, from the listed and non-listed environment.