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Johannesburg - Business Confidence in March showed its first year-on-year increase since September 2007, according to the SA Chamber of Commerce and Industry (Sacci) Business Confidence Index (BCI).
Sacci said in a statement on Thursday business confidence in March increased by 0.2 index points to measure 83.2.
This was 4.3 points higher than in March 2009 - the first year-on-year increase since September 2007.
The BCI registered its lowest level of 78.9 in March 2009 during the present downward phase. It peaked at 103.5 in December 2006.
"Although the February and March 2010 readings mark moderate improvements, the BCI has remained range bound since September 2009.
"It appears that most economic activities have progressed beyond their lower turning points but the overall level of economic activity remains low and lacks vigour," Sacci said.
Although the number of positive impacts varied from month to month, of significance was the positive changes in export and import volumes that moved decisively on the previous month's levels.
The positive moves, in particular the year-on-year changes, signified a well-established turnaround in certain sub-indices, Sacci said.
"Some sectors remain subdued by a recessionary lag, especially niche trade sectors and catering and accommodation.
"The financial environment, however, has turned more positive on a short term as well as on a longer term outlook and remains supportive of business confidence."
According to Sacci, the latest economic and market-related data suggested that the economic recovery was consolidating and progressing from recent recessionary global conditions.
"Local economic support for recovery remains constrained from the consumer side while the fixed investment cycle is currently slowing down."
Enhanced participation in international trade was therefore crucial for economic growth.
"South Africa needs to manage its global trade participation beyond being a mainstay commodity producer and price taker," Sacci said.
- Sapa
