South African business confidence continued its slow recovery in November, rising to its highest level since April last year, driven by low inflation and the resumption of trade after the coronavirus lockdown, a survey showed on Wednesday.
The South African Chamber of Commerce and Industry’s (Sacci) monthly business confidence index (BCI) rose to 93.4 in November, from 92.0 in October.
The November reading was the highest in since April 2019.
“The present short-term month-on-month recovery of 1.4 index points in the BCI is primarily the result of the low base of activity from where the recovery is gradually gaining traction,” Sacci said in a statement.
“Low inflation, the recovery in certain trade categories, and the reset of international trade and commodity prices, are the major developments that contributed to an improved business climate at present.”
Sacci, however, cautioned that confidence was still plagued by poor economic performance, high unemployment and the government’s rapidly rising debt levels.
It said a further improvement in business confidence would depend on a more substantial economic performance emanating from recalibrating reforms to bolster growth and employment.
Data showed on Tuesday South Africa’s economy rebounded strongly in the third quarter as coronavirus restrictions were eased, but analysts warned the outlook remained bleak amid concerns doubt a second wave of Covid-19 infections.