Business confidence in South Africa again dipped again in May, according to the latest business confidence index (BCI) published by the South African Chamber of Commerce and Industry on Wednesday.
BCI decreased to 94 in May, its lowest level since October 2017, and down from 96 in April. SACCI noted that that BCI was still 0.8 index points up on its level from a year ago.
The chamber said that the decrease was due to inflation caused by the one percentage point increase in the VAT rate, and lower merchandise import and export volumes.
It added that, despite the fall in the index, SA's business climate would remain largely “positive and optimistic” as long as there was “clear acknowledgement of the challenges facing South Africa”.
“Once the problems of good governance have been rectified, attention should turn to structural economic concerns that threaten South Africa’s path to a sustainable economic recovery."* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER