JOHANNESBURG – The Business Confidence Index (BCI) compiled by the South African Chamber of Commerce and Industry (Sacci) ticked up slightly to 92.4 points in September, its highest level since June after dipping to 89.1 points in August, a performance attributed in large measure to the perceived consensus around the National Treasury’s economic recovery plan.
The Sacci BCI for September improved by 3.3 points from August, but was still 0.9 points below the level in September 2018. Seven sub-indices of the BCI improved between September and August, including energy supply and precious metal prices.
Increased merchandise export volumes, a stronger rand exchange rate, high new vehicle sales, and a rise in the real value of building plans passed contributed to September’s positive movements.
But three sub-indices, including inflation, imports and real private sector borrowing, remained unchanged.
Sacci said that the improved level of the BCI could contribute to a turnaround in general economic conditions and sentiment and might present a turning point.