JOHANNESBURG- South Africa’s business confidence fell for a fifth month in a row in June, with activity mainly hit by a sharp decline in the currency as well as slower retail sales.
The South African Chamber of Commerce and Industry’s (SACCI) said in a statement, monthly business confidence index (BCI) fell to 93.7 in June from 94.0 in May.
The numbers are the lowest since September 2017 and short of last average 94.4%.
In January business confidence was at a year high 2.5 after Cyril Ramaphosa was elected as president after the African National Congress (ANC) in December decision.
The earlier enthusiasm for change has stalled, “Uncertainties surrounding economic policy direction and position should be clarified so that investor and business confidence can reaffirm itself,” SACCI said in a statement.
“The risk of a global trade war has alerted certain industries in South Africa, and they have already indicated it would affect industries and employment negatively, while knock-on effects have been cited by complementary industries and their export performances,” SACCI said.
The sharp slide in the rand has resulted in rising lending rates United States and the business confidence is also on the edge as fears of the trade war between China and United States heat up.
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