BUSINESS confidence recovered for the fourth consecutive month in
April supported by a firmer rand and higher retail sales and share
prices.
Although the rand has weakened over the past few days amid investor risk aversion, it was mostly firmer in April.
The
South African Chamber of Commerce and Industry’s (Sacci’s) business
confidence index (BCI) was up 1.3 points to 82.5 in April.
When
businesses become more confident they increase investment, which creates
jobs.
Despite the small pick-up in confidence, the chamber is
concerned that subdued global and local economic growth is weighing
heavily on business confidence. "Policy positions in future should
augment economic growth to achieve substantial higher rates," Sacci CEO
Alan Mukoki said.
Economically affordable and implementable
decisions needed to be taken in South Africa to set the momentum for faster
economic growth, Mr Mukoki added.
Seven of the 13 indicators
(municipal services, manufacturing, imports, vehicle sales, retail
sales, share prices and the rand exchange rate) that were included in
the survey for April increased, three (exports, construction of
buildings and real financing costs) were negative, and three (inflation,
real private sector borrowing and precious metal prices) were stable.
The
index at 82.5 points in April was still 7.4 index points below where it
was in April last year. This annual comparison suggested a tighter
business climate in April compared with a year ago, with financial
circumstances and the real economy being worse off.
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