Business Climate Monitor continues downward trend

14 Nov 2017 17:00pm
WINDHOEK, 14 NOV (NAMPA) – The IJG Business Climate Monitor (BCM) continued its downward trend, falling by 0.27 to 43.82 points in September 2017.
The latest BCM, as produced by the Institute for Public Policy Research (IPPR), shows that the index is now even further below the 50-point level that indicates economic contraction.
The September 2017 bulletin, which was availed to the media by IPPR on Tuesday, states that the leading indicator remained unchanged.
The slight decrease in the BCM, coupled with the flat leading indicator, suggest some moderation of the economic downturn, the IPPR noted.
Of the 31 indicators measured by the index, 14 showed improvement while the remaining 17 deteriorated.
The number of livestock fell by 30%, or almost 16 000 cattle, compared to August 2017.
However, the year to date has seen 100 000 more cattle marketed in 2017 than in 2016.
According to the BCM, the growth seen in some commodity prices this year made an about-turn in September.
In US Dollar (USD) terms, copper prices fell by five percent, while gold and diamond prices fell by three percent and two percent respectively, and uranium remained flat.
A four percent depreciation in the USD/South African Rand (ZAR) exchange rate saw the prices remain flat in Namibia Dollar terms, except for uranium which rose by five percent.
The BCM also indicates that inflation went up to 5.6 percent year on year, due in part to a 30 cents increase in fuel prices.
The index encompasses 31 indicators, selected from available high-frequency data, which are split into five broad categories, namely; policy environment, primary sector output, secondary and tertiary output, external account, and pricing.