Business confidence improves - Sacci

Johannesburg - The latest SA Chamber of Commerce and Industry (Sacci) Business Confidence Index (BCI) shows an improvement in November.

"The Sacci is relieved that the despairing mood in the business environment may be losing its grip although challenges like further power shortages could trigger a further bout of poor confidence," Sacci said in a statement on Wednesday.

The BCI gained two index points from 88.8 in October 2014 to 90.8 in November.

The index had recorded very low levels in the past couple of months, particularly in July when it recorded 87.9 points.

Sacci warned that a slowdown in the economies of major trading partners and the low commodity prices could negatively affect the business climate.

Trigger positive response

There must be solid and consistent improvements in the business climate for a sustained recovery in business confidence.

"The improvement in the November BCI indicates that even the possibility of an improved approach to the challenges facing the economy could trigger a positive response in business confidence."

Sacci said it was concerned that weak economic performance and "populist approaches" to addressing problems in the economy undermined the performance of the country's financial system.

"Moody's recent downgrade of government's debt and the major banks due to poor growth prospects and the possibility of government debt rising in relation to gross domestic product, are a case in point."