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07 Mar 2012 14:54
Business confidence recovered marginally in February, the South African Chamber of Commerce and Industry said on Wednesday.
Its Business Confidence Index (BCI) increased by 2.4 index points to 99.5 in February, after dipping by two points between December 2011 and January 2012.
“Business confidence is still failing to identify real positive economic momentum,” the chamber said in a statement.
The results indicated there was room for improvement in business activity, despite trying times in Europe and the US, lower growth predictions for Asia, as well as tight domestic economic circumstances.
“From a confidence perspective, the real economy showed an improvement in February compared to a year ago while the financial environment remained neutral towards business confidence,” the chamber said.
Government’s commitments to larger infrastructure spending had provided the basis for broader economic activity, which would enhance business confidence, it said.
But continued labour protests and the rising cost of fuel remained constraining factors on business optimism.—Sapa
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