SA Business Confidence Improves

South African business confidence improved in the month of September. It recovered from a 34-year low with exports and vehicle sales increasing while economic activity picked-up.

The South African Chamber of Commerce and Industry’s (SACCI) in its monthly business confidence index (BCI) explained the above. The SACCI adds BCI rose to 92.4 in September from 89.1 in August.

Furthermore, seven sub-indices of the index improved but three remained unchanged between September and August.

“Positive annual contributions in September came from the higher U.S. dollar price of precious metals, energy supply – the latter mainly owing to a decline in the crude oil price,” SACCI said in a statement.

“There are indications that the economy may have hit a trough and could obtain some stability which could auger well for growth prospects,” the business body said.

Africa’s most industrialised economy expanded 3.1percent in the second quarter of 2019 after contracting by the same margin in the first. Analysts are divided on whether the momentum can be sustained due to the slow speed of policy and economic reforms.

Finance Minister Tito Mboweni’s mid-term budget speech due on Oct. 30 will be closely watched for details on the restructuring of state-owned power utility Eskom and progress on reviving tax revenues.