Business Confidence improved between December and January, with the SA Chamber of Commerce and Industry's Business Confidence Index improving for the second consecutive month.
Sacci economist, Richard Downing, said Tuesday that the January BCI came in at 97.7 index points, up from the 93.8 recorded in December.
"This is not only in severe contrast to the severe year-on-year decline of December 2015 of 10 index points, but it is the second consecutive month of improving on the year earlier," he said.
"January 2017 saw the largest positive month-on-month change in the SACCI BCI of 3.9 index points since the month-on-month change of 4.1 index points in February 2015. It was also the biggest positive year-on-year difference of the SACCI Business Confidence Index (BCI) since the 5.3 index points of May 2011," Downing said.
"The recovery of the BCI in October, November and December 2016 and the acceleration in January 2017 indicate a normalisation of the business climate in South Africa despite uncertain local and global economic and political conditions. Noticeably more BCI sub-indices were positive month-on-month in January 2017 than in December 2016 with only three of the thirteen sub-indices making negative contributions to the BCI in January 2017."
Sacci said that "the year-on-year comparison for January 2017 indicates a slightly more relaxed business climate than was evident in December 2016. Four of the thirteen sub-indices improved on a year ago while three remained virtually unchanged. Apart from the rand exchange rate, the increased real value of building plans passed, the higher gold and platinum price, and a larger number of new vehicle sales, also contributed to the BCI in January 2017."
Downing added that after experiencing a challenging and turbulent year in 2016, the SACCI Business Confidence Index suggests improved prospects for the business climate after more normalised socio-political conditions prevailed towards the end of last year and the start to 2017.
"If these conditions could continue to carry the day, then the momentum gained in business confidence could accelerate and create the necessary investment and economic growth atmosphere. It is further imperative that South Africa stay abreast and adopt to international and global changes that stand to impact on South Africa, global trade conditions, the local economy and the business community," he said.
