The South African Chamber of Business’s (Sacob) Business Confidence Index (BCI) rose to a fresh record high of 124 in April from 121,9 in March. The previous record was 122,4 in December 2003.
Sacob said in a statement on Thursday that the movements of the sub-indices of the BCI from March to April were rather mixed. Foreign trade data was perhaps the most positive and surprising as both export and import volumes accelerated, reflecting improved world economic growth and a resilient domestic economy.
The relatively stable and conducive financial environment remained in place, said Sacob.
During April, seven of the 13 sub-indices improved on their previous levels, four remained virtually unchanged and two sub-indices — new vehicle sales and the real prime overdraft rate — moved into negative territory.
The continued high level of the BCI should not be seen as reflecting an unprecedented high level of business confidence, said Sacob. The current BCI level merely reflects a structurally changing business environment where South Africa is moving closer to the global benchmarks of low inflation, a reasonably stable exchange rate and a less sensitive monetary environment accompanied by fiscal discipline.
Before rapid changes in the global financial environment set in, South Africa will have to act in time to protect the sounder domestic financial environment. The present conducive financial surroundings should also be supported and underpinned by more robust economic performance, it added. — I-Net Bridge