Business confidence plunged to its lowest level in 12 years last month‚ according to an index compiled by the South African Chamber of Commerce and Industry (SACCI).
SACCI's business confidence index fell to 90.9 from 94.9 in June‚ reflecting what it described as the negative influences of the domestic and international environments.
“The latest move in the BCI indicates that business confidence remains highly fragile and unpredictable‚” SACCI said.
The business group said that it was concerned about the slowdown of economic growth on a global scale and the widespread downward revision of expected growth rates for SA.
Many analysts have revised their predictions for growth this year down to 2.5% from between 2.7% and 2.9% earlier. The economy grew by 3.1% last year.
“This is especially concerning when the effect this will have on the trade and the current account of the balance of payments is considered‚” SACCI said. - I-Net Bridge