Agbiz/IDC Agribusiness Confidence Index improves in Q1, 2017
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The Agbiz/IDC Agribusiness Confidence Index improved by 2 Index points in the first quarter of this year to 57. A reading above 50 indicates expansion in the South African agribusiness activity. Therefore a 57 Index point suggests that agribusinesses are holding an optimistic view regarding business conditions in the country. Worth noting is that the Index has remained above the 50 Index points for
the past three consecutive quarters, which signals a consistent improvement in agribusiness activity.
Amongst the ten sub-indices making up the Agbiz/IDC Agribusiness Confidence Index, the turnover, net operating income, employment, economic growth and agricultural conditions sub-indices were the key drivers of the improvement in confidence in the first quarter of 2017. The general improvement in these particular sub-indices is in line with positive prospects for the 2016/17 production season. Meanwhile, the decline in other sub-indices mirrors the aftermath of the 2015/16 El Niño induced drought, as well as uncertainty regarding land reform processes in the country.
Click here for the Agbiz/IDC Agribusiness Confidence Index for Q1, 2017 results and headline data (excel).
