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Johannesburg - Business confidence remained under pressure in February, declining because of low economic growth, the SA Chamber of Commerce and Industry said on Thursday.
The Sacci Business Confidence Index (BCI) declined from 94 in January to 93 in February."The monthly decline... is the result of real economic activity as well as the financial environment failing to support a sustained improvement in business confidence," said Sacci CEO Neren Rau.
Seven of the 13 BCI sub-indices impacted negatively on a monthly basis.
Merchandise export volumes (seasonally adjusted), real retail sales and the weighted average exchange rate of the rand were the only sub-indices driving the BCI higher in February.
Rau said the annual performance of the BCI sub-indices was of even greater concern, with 10 sub-indices being negative, and only new vehicle sales, share prices and real borrowing by the private sector making positive contributions to the BCI.
He said the 2013 budget presented by Finance Minister Pravin Gordhan was a particularly important event in the context of recent militant strikes, mixed policy signals and slow economic growth.
"The implemented outcomes of budget 2013, and the potential improvements in financial discipline and accountability in the broader public sector, will determine the extent to which South Africa progresses towards the desired goals of the National Development Plan in the short term," Rau said.
Sound and sustainable public finance management was a key contributor to possible improvements in the business climate, he said.
