OWN CORRESPONDENT, Johannesburg | Monday 7.00pm.
SOUTH African business confidence fell to its lowest level in 12 years during August as the fragility of emerging markets was exposed in the global market instability, figures released by the South African Chamber of Business on Monday indicated.
Business confidence fell 4,1 points during the 4,1 points over August to 86,2 in terms of Sacob’s monthly Business Confidence Index declined.
This fall follows decreases of 5,7 and 1,9 points in June and July respectively.
“This decline in the business mood is mainly the result of the current upheaval in global financial markets and the implications for emerging markets like South Africa.
“By any standard, the international economic environment lately has been highly volatile and uncertain, and this is now reflected in a much lower level of business confidence,” the report said. Accordingly, Sacob adjusted its projected economic growth rate this year to around 0,5 percent from the 1% it previously projected.
On the upside, the report said that, given the restructuring of the economy over the last few years and the successes achieved in bringing down inflation and the Budget deficit, foreign funds can be expected to return to the country as soon as stability returned to the financial markets.