/ 6 June 2006

Business confidence on the wane

Business confidence could decline in months to come, the South African Chamber of Business warned on Tuesday.

However, in May, the Business Confidence Index (BCI) was still in ”comfortable territory”, said Sacob consulting economist Richard Downing.

”The financial market indicators adjusted significantly during May 2006. If the months-end values of May continue through June, the BCI could decline substantially in months to come,” said Downing.

”The present uncertain business mood takes its queue from the adjustments in the global environment, but socio-political issues peculiar to South Africa may further contribute to a wary assessment.

”Lately, emerging markets are … part of the global reconsideration to which South Africa should be sensitive,” he said. – Sapa