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The Monthly Business Confidence Index (BCI) of South Africa's Chamber of Commerce and Industry (Sacci) fell to 93.7 points in June, from 94 points in May. On an annualized basis, the BCI was 1.2 points lower than the 94.9 points recorded in June of last year.
The company has accused the BCI's annual decline of reducing export and import volumes of goods, compared to a year ago. Sacci said that a weaker rand also contributed.
The weakest negative effect of the month on the business climate was the low exchange rate of the trade- and investment-weighted rand, the decline in real sales, the decline in the real value of construction projects, and the cost reserves energy.
The decline in business confidence in June also marked a dramatic drop in the index, which peaked at 99.7 points in January after two and a half years of increases, while Ramaphoria was taking speed.
Sacci economist Richard Downing said the uncertainties surrounding economic policy directions and positions needed to be clarified urgently so that investor and business confidence could be restored.
"It seems that a turning point has been reached with regard to the bankruptcy of the tax system, but the scale of the challenges remains considerable.The attention should now change and focus on the path to follow, "said Downing.
The local currency has also been battered in recent months, the trade war between the United States and China and a growing trade deficit resulting in additional volatility and a weakening of
The Bureau of Economic Research said last week that in light of the overall risks and apparent slowdown in Ramaphosa's reform momentum, it had significantly reduced the forecasts of the rand.
The organization provided that the local unit would negotiate a wide range of R13 to R14 against the dollar in the fourth quarter of next year, ending the period around R13.40.
John Ashbourne, Senior Emerging Markets Economist at Capital Economics, said that the latest business confidence has added to the evidence that South Africa's economy has struggled in the past. second trimester.
The optimism surrounding the inauguration of President Cyril Ramaphosa last February did not translate into a real or sustained boost for the long-standing economy from South Africa, "said Mr. Ashbourne.
" We will have a more precise idea of how things will go when the figures for mining and manufacturing production of may be published tomorrow. "
data on the mining and manufacturing industries, which could provide a better indication of industrial production in the second quarter .The two sectors reported poor results in the first quarter and were the main contributors to a contraction of 2.2% during this quarter.
"We expect mining output to remain on a downward trend, contracting for a third consecutive month of about 3.5% from one year to the next, "said economist Lara Hodes.
Moderate data on June's business climate was the second index that disappointed captains of South Africa's industry.
The Merchantec Confidence Index CEO released Friday rose from 60 points in the first three months of the year to 47.4 points, a spike falling as a result of optimism from the rise in sentiment in the last quarter. 19659002] -BUSINESS REPORT
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