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Johannesburg - The Business Confidence Index (BCI) of the SA Chamber of Commerce and Industry (Sacci) shed 2.5 points in December 2014, declining to 88.3 from 90.8 in November, it said on Thursday.
This was the lowest level since July 2014 when it measured 87.9, Sacci said in a statement.
"Given the highest level of 122.1 for the BCI in December 2006, the present level remains a matter of grave concern. The average for the BCI in 2014 was 90 compared to 91.4 in 2013."
The previous lowest annual average was 87.6 in 1999 and the highest was 118.8 in 2006.
"The immediate economic outlook for South Africa is largely influenced by the much lower international crude oil price and electricity power shortages," Sacci said.
"These two developments are contrary to each other in influencing the economy. The dismal performance by the rand exchange rate and a strong US dollar are main causes for not taking full advantage of the lower US dollar crude oil price."
Sacci was concerned that electricity shortages would cause the economy to stagnate.
"An apathetic approach to economic challenges has led to the constrained environment South Africa finds itself in."
