Home / Business / Fin24.com | Business confidence on the rise for first time in six months

The South African Chamber of Commerce and Industry announced on Wednesday that its monthly Business Confidence Index (BCI) had risen in July – the first positive movement in six months.

The BCI rose from 93.7 in June to 94.7 in July. This is the first month since January 2018 that the index has risen. 

“Although there are still major economic challenges facing South Africa, it appears the downward trend in the business climate since February 2018, has lost its momentum and confidence could turn more positive,” the chamber said in an accompanying media statement. 

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“[A positive business climate] mainly depends on the removal of economic policy uncertainties and the nurturing of all global economic relations for the benefit of South Africa and all its people. Apart from the economic challenges, it is important to have a stable socio-political environment that enhances economic performance and business confidence.”

The index is still below the level it was a year ago in July 2018, when it came in at 95.3 points. 

The chamber said the largest positive month-on-month influences on the BCI for July were merchandise export volumes, lower inflation and real retail sales.

Merchandise import volumes, the decline in precious metal dollar prices and numbers of new vehicle sold made the largest negative impacts. 

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