Johannesburg - South Africa's business confidence index recovered in July, but the outlook for the rest of the year remains vulnerable because of slowing growth in China, a key importer of local commodities, a survey showed on Wednesday.
The Business Confidence Index rose to 87.9 in July, after falling to a 16-year low in June from 84.6, the South African Chamber of Commerce and Industry (Sacci) said.
“The total effect of slowing growth in China and the Greece financial crisis have not yet completed its full course and the impact on the South African economy will become apparent towards the fourth quarter of 2015,” Sacci said in a statement.
Slower growth in China has had an impact on commodity prices, adding pressure on the local mining sector which is already struggling with higher costs.
REUTERS