Agric Matters with Wandile Sihlobo

Agbiz Chief Economist  Wandile Sihlobo analises the latest trends in the economy with a particular focus on agriculture. He upacks the Agbiz/IDC Agribusiness Confidence Index (ACI) which moderated further by 2 points to 60 in the second quarter following a 12-point decline in Q1, 2022. This fall in sentiment is on the back of a range of factors including rising input costs, biosecurity concerns, hikes in interest rates, intensified geopolitical risks, as well as ongoing weakness in municipal service delivery and network industries. Still, a level above the neutral 50-point mark implies that agribusinesses remain broadly optimistic about operating conditions in South Africa. Therefore, Q2, 2022 results still reflect favourable conditions, albeit not as strong as the recent quarters. This survey was conducted in the first ten days of June 2022 and covered agribusinesses operating in all agricultural subsectors across South Africa.