SACCI INDEX: Business confidence sags again in May to lowest level in almost two years

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The South African Chamber of Commerce and Industry’s Business Confidence Index sagged for the third month running in May, falling to 89.3 from 93.7 in April. It is the latest signal of waning confidence in an economy that is on the ropes.

The Business Confidence Index reading of 89.3 was the lowest since the 85.7 of September 2020, the South African Chamber of Commerce and Industry said in a statement on Tuesday. This marked the third consecutive month of decline, a clear signal that business confidence in South Africa is eroding.

Load shedding didn’t get a mention in the release. It may be the case that power cuts are simply now a given, like the sun rising in the East each morning. But it is clearly weighing on confidence and investment decisions. So the Sacci BCI readings add to a swelling body of data and evidence that economic growth has slowed significantly this quarter.

 

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