Africa Business Confidence Index lower, but shows growth - Report

Accra, Oct. 10, GNA - The African Business Confidence Index (ABCI), which measures business confidence in the manufacturing and non-manufacturing private sector in Africa, shows growth in both sectors in September.

Compared to August, the manufacturing and non-manufacturing indices saw a decrease of 1.1 and 2.0 percentage points respectively.

Mr Bas Vlugt, Chief Executive Officer of Africa Business Communities, whose organization is a co-brain behind the index, in a report to the Ghana News Agency, said the September ABCI results indicated confidence and growth with an index of 51.3 and 53.3 for the manufacturing and non-manufacturing sectors respectively.

“A level of 50 and above indicates expansion,” he said.

Mr Vlugt said that business professionals from almost 30 countries in Africa participated in the survey making the results a reliable gauge and early indicator of the underlying economic activity on the African continent.

He explained that the Index used a widely accepted international survey methodology for managers working in the private sector in Africa-based companies.

Mr Vlugt stated that these managers were asked to assess their businesses’ performance based on a comparison of the current month to the previous month.

“The survey centres around the following indicators: new orders, production employment, supplier deliveries for the manufacturing sector and similar indicators for the non-manufacturing sector, he added.

He called on business professionals based in Africa to join the Africa Business Panel, since being members would provide them the platform to directly contribute to the Index.

Mr Vlugt said the Africa Business Panel generated reliable indices on business developments and economic outlook in Africa, so doing it contributed to the continent’s business reputation and produces in-depth market research data for governments, the business community and international organizations.

Africa Business Panel provides intelligent matches for African business professionals with the rest of the world, which results in promising business opportunities.

The ABCI follows a similar methodology and logic as the Purchasing Managers Index indices, which set the global standard.