South Africa’s business confidence index rose slightly to 92,8 in July from 92,6 in June, although a weaker local and global economic environment continued to exert pressure, a survey showed on Thursday.
The South African Chamber of Commerce and Industry (SACCI) said it remained concerned about recent social and political developments in South Africa and their potential to impact adversely on business confidence over the next couple of months.
”With regard to the sub-indices of SACCI’s BCI, one could sense a slight relief from pressures that could have deepened the negative business confidence
scenario. Should the BCI re-establish its downward trend, it is expected that the decline would continue with a lower intensity,” SACCI in a statement.
Of the thirteen sub-indices of the BCI, positive contributions came from three sub-indices in July 2008, namely, real financing cost, liquidations and
merchandise export volumes. The other ten sub-indices either had a negative impact or had no effect on the BCI’s movement in July 2008.
SACCI noted that the weaker local and global economic environment continued to exert adverse pressure on business confidence in South Africa.
”This together with certain domestic social and political events has done little to placate the prevailing business mood. Undoubtedly, the rising petrol and food prices over the last several months have fuelled inflationary pressures with concomitant implications for the balance of payments. The Eskom debacle at the beginning of 2008 highlighted the severe growth constraints facing the country and its possible economic impact if not managed appropriately,” said the SACCI economists.
SACCI also said it was concerned over recent social and political developments in South Africa and their potential to impact adversely on business confidence over the next couple of months.
”Its import may be more significant than even the economy or international environment. SACCI urges economic role players to acknowledge their stake in
the process of building business confidence.” – Reuters, I-Net Bridge