SA’s business confidence claws its way back
The South African Chamber of Commerce and Industry attributes an increase in confidence to a stronger rand and improved vehicle sales, among other factors.
CAPE TOWN - South Africa’s business confidence seems to be clawing its way back. The South African Chamber of Commerce and Industry released July’s Business Confidence Index earlier on Tuesday.
The chamber attributes an increase in confidence to a stronger rand and improved vehicle sales, among other factors.
Subdued business confidence has been a concern highlighted by credit ratings agencies as well as the Reserve Bank as a massive risk to economic growth.
Sentiment took a tumble due to a number of factors, among them the removal of the finance minister and his deputy, the Cabinet reshuffle and a string of ratings downgrades.
But the latest Business Confidence Index shows an uptick coming in at the highest level it has been at since February this year.
The Chamber of Commerce and Industry says for this trend to continue, the focus needs to be solely on pulling the country out of a technical recession.
It warns, however, populist stances on policies could create expectations the country cannot meet.
(Edited by Zamangwane Shange)