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Johannesburg - Business confidence dipped in April, the SA Chamber of Commerce and Industry (Sacci) said on Thursday.
"... the monthly volatility and the frequent changes in sub-index measures from positive to negative indicates a lack of sustainable momentum and a clear direction in business confidence," Sacci said.
The Sacci Business Confidence Index (BCI) was 86.9 in April 2011, down 1.4 points from March's 88.3. It was 86.4 in February.
" ... the BCI was only 2.7 index points higher in April 2011 than in April 2010 compared to the 5.1 points annual improvement in March 2011."
Sacci said there were some improvements in confidence in April in some of the sub-indices.
Confidence was positive in liquidations, manufacturing output, export volumes and import volumes.
Seven sub-indices were positive, five were negative and one sub-index was neutral.
Sacci said the latest dip in business confidence came in the wake of further uncertainty in the global economic environment.
"Lower economic growth than expected, increasing inflation, fiscal tightening and rising interest rates became more prevalent - a closing window of opportunity."
Sacci was concerned about the decline in employment figures, after Statistics SA said on Tuesday that the unemployment rate had increased to 25% percent between the fourth quarter of 2010 and first quarter in 2011.
"The significantly high number of youth unemployment is especially disturbing.
"By lowering the costs of doing business (especially for small enterprises) and easing the rigidity of the labour market, South Africa can catalyse job creation," it said.
"... the monthly volatility and the frequent changes in sub-index measures from positive to negative indicates a lack of sustainable momentum and a clear direction in business confidence," Sacci said.
The Sacci Business Confidence Index (BCI) was 86.9 in April 2011, down 1.4 points from March's 88.3. It was 86.4 in February.
" ... the BCI was only 2.7 index points higher in April 2011 than in April 2010 compared to the 5.1 points annual improvement in March 2011."
Sacci said there were some improvements in confidence in April in some of the sub-indices.
Confidence was positive in liquidations, manufacturing output, export volumes and import volumes.
Seven sub-indices were positive, five were negative and one sub-index was neutral.
Sacci said the latest dip in business confidence came in the wake of further uncertainty in the global economic environment.
"Lower economic growth than expected, increasing inflation, fiscal tightening and rising interest rates became more prevalent - a closing window of opportunity."
Sacci was concerned about the decline in employment figures, after Statistics SA said on Tuesday that the unemployment rate had increased to 25% percent between the fourth quarter of 2010 and first quarter in 2011.
"The significantly high number of youth unemployment is especially disturbing.
"By lowering the costs of doing business (especially for small enterprises) and easing the rigidity of the labour market, South Africa can catalyse job creation," it said.
