This week's positive news on economic growth covered the third quarter, July, August and September, but it is difficult to interpret the confidence indices for the fourth quarter. ABSA and the Bureau of Economic Research's survey of manufacturers finds that business confidence is unchanged. The index stands at 26 points, below the long-term average of 39 points. In contrast, FNB and the Bureau's consumer confidence index improved from -25 to -8 points. This is still in negative territory, but a big improvement from the third quarter and similar to the fourth quarter of last year. How do we understand this?

* The Economics Minute is supported by the NWU Business School.