South African business confidence dipped in September on lower vehicle and retail sales and a drop in the value of building plans, but the overall trend since May’s election remains positive, data showed on Tuesday.
The South African Chamber of Commerce and Industry’s Business Confidence Index (BCI) fell to 110.2 in September (ZABCI=ECI), opens new tab, down from 111.5 in August but higher than the 109.1 recorded in July.
The BCI is released every two months.
Business sentiment rose gradually from June, when a broad coalition government was formed after the African National Congress lost its parliamentary majority in the election.
“The meagre dint of the BCI in September may however be ascribed to understanding the challenges and finding convergence between role players,” the South African Chamber of Commerce and Industry (SACCI) said in a statement.
Factors supporting sentiment last month included increased numbers of international tourists, higher export volumes and lower inflation.
Annual inflation fell to 4.4% in August, dropping below the midpoint of the central bank’s target range and encouraging it to cut interest rates for the first time in more than four years in September.
SACCI said it hoped the finance minister’s mid-term budget statement on Oct. 30 would “confirm the effort of resolving structural impediments in the economy”.