SACCI has seen a slight recovery in South Africa’s April Business Confidence Index (BCI).
After a recorded slump of 89.1 in March, the BCI recovered 0.8 index points in April bringing it to 89.9 points. However the BCI is still 2.7 index points lower than the recorded 92.6 from the same month last year.
According to the SACCI, the first four months of 2015 may indicate that the business climate is heading towards a more dismal year than 2014 if the current inclination continues.
The month-on-month changes in the sub-indices of the BCI were much more encouraging than in March 2015. SACCI acknowledged that this was not regarded as a significant turnaround, it at least differed from the short term outlooks of a number of months.
However, the positive monthly changes were not consistent on a year-on-year basis. This was due to the structural economic limits of the utility services by the public sector which hindered the flow of business activity.
Despite the socio-economic setbacks, SACCI said businesses were pushing ahead and showing, “endurance, resilience and the resolve to sustain themselves despite various cross winds”.
South Africa’s weak real demand and the debt level of its consumers has led to a mild monetary policy position.
“The inflation in South Africa could, however, accelerate in the near future as there is the anticipation of rising fuel and energy prices, a weaker rand, increased costs of municipal services and rising real labour costs,” the chamber said.