Theme: Women in Business
Weak economic growth and tough conditions in the business environment are having a clear negative effect on the ABSA SME index which dropped 0,5% from the first quarter to its second lowest point since inception.
The ABSA SME index is at 92,9 points just 0,1 point from it post-recession low 92,8 reached in April 2012. The drop of 5,6% over a year ago is also the biggest drop since the great recession of 2008/09 when the ABSA SME index dropped 11,7%
Further evidence of the tough environment which business people face is the fact that forced liquidations reached their highest point in five years in June despite new business rescue regulation intended to help less firms go into liquidation.
The figures confirm that industrial action is hampering business activity as all business confidence indicators are well below levels that would be considered normal. Many business indicators outside of consumer confidence are showing large declines.