Source: Agbiz media release, 15 June 2020, photo credit: TIBCO Software
The Agbiz/IDC Agribusiness Confidence Index (ACI) fell from the 50-point mark in the first quarter of the year to 39 in the second quarter. This is the lowest level since the third quarter of 2009, at the height of the global financial crisis. A level below the neutral 50-point mark implies that agribusinesses are downbeat about prevailing business conditions in South Africa.
The ongoing COVID-19 crisis is primarily a health shock, but its impact on the economy has been severe and these sentiment results are a reflection of that. This second-quarter survey was conducted between the final week of May and the first week of June 2020. The ACI covers agribusinesses operating in all agricultural subsectors across South Africa.