Business confidence among South African companies dipped a little in February from its January highs, but remained in healthy territory, a survey showed on Wednesday.
The South African Chamber of Commerce and Industry’s business confidence index was at 98.9 in February, slightly off January’s level of 99.7. in January.
“The direction of various indicators is still positive although the pace of improvement has slowed from the exceptional positive mood in December 2017 and January 2018,” SACCI said.
“Although the present business confidence contains substantial positive sentiment, investment decisions will soon have to become reality to create sustainable higher economic growth and employment prospects.”
SACCI said lower inflation, a stronger rand exchange rate and a budget last month which signalled the government’s resolve to turn back from a fiscal cliff could enhance the economic performance over the short-term.
“However, pivotal to a sustainable and inclusive economic growth performance over the longer-term is a substantial increase in fixed investment by local and foreign investors,” it said.
“Greater economic policy consistency and predictability should add to the present improved business confidence level.” (via African News Agency)