SA Business confidence improves
Business Confidence rose in February said the SA Chamber of Commerce and Industry on Thursday.
Its Business Confidence Index (BCI) rose by 2.1 index points to 84.5 in February after the BCI started on a solemn note in January at 82.4, SACCI said in a statement.
However, it emphasised that a one month spike did not indicate the trend was changing.
Domestically, there were positive developments that suggested a more business friendly turn of events. Movements in the sub-indices for the rand exchange rate, consumer inflation, the gold and platinum price and real financing costs were positive for business confidence in February 2009.
Strong imports and less negative retail sales also positively affected the business climate, SACCI said.
On the international front, however, the turbulent and still unsettled global credit and financial markets were leaving their indelible mark on the global economy and impacting real economic activity in South Africa.
A marked decline in merchandise exports weighed heavily on the BCI, while vehicles sales, manufacturing output, building plans passed and the equity market performance kept their negative grip on business confidence.
SACCI said the spike in business confidence in February 2009, after a clear trend of deterioration in the business climate, was an indication of the uncertain environment.
"Business confidence remains under stress and a one month spike does not represent a trend reversal," it said.
SACCI believed that the distortions in the real economy caused by the international financial and credit crisis would take time to correct.
"This correction is expected to take place faster than in the 1930s and is necessary to restore business confidence."
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