A survey carried out on Tuesday revealed that the South Africa’s business confidence climbed to its highest level in five months in July helped by a firmer currency, higher sales of vehicles and falling inflation.
The South African Chamber of Commerce and Industry’s (SACCI) monthly business confidence index (BCI) accelerated to 95.3 in July from 94.9 in June. It was the highest level since February 2017.
“Locally there are indications that growth in the second quarter may be slightly positive. The inflation rate is also slowing down,” SACCI economists said in a statement.
Africa’s most industrialized economy slipped into recession in March, while political scandals and policy uncertainty, including a no-confidence vote against President Jacob Zuma later on Tuesday, have dampened investment.
SACCI warned that factional battles in the governing African National Congress could hamper a recovery.