The economy was unlikely to shake off anaemic growth in the second quarter of this year‚ economists said on Tuesday after a dip in the South African Chamber of Commerce and Industry (Sacci) Business Confidence Index confirmed their concerns.
The Sacci Business Confidence dipped to 93.7 index points in June from 94 index points previously. The index has slipped each month from a high of 99.7 in January this year.
John Ashbourne‚ Africa economist at Capital Economics said: “The latest drop strengthens our view that South Africa’s economy remained weak in quarter two.”
Economic growth contracted by 2.2% in the first quarter of this year after a stronger finish in 2017.
The Sacci index is a measure of business activity and is based on several indicators including energy production‚ trade figures and the performance of financial markets.
Seven of the thirteen sub-indices reflected negativity in the business environment.
The largest negative influences were the weaker rand exchange rate‚ lower real retail sales‚ a decline in the value of building plans passed and higher energy costs.
A rise in merchandise import and export volumes and new vehicle sales impacted positively.
The risk of a global trade war and potential knock-on effects also weighed negatively on the outlook from certain industries in South Africa‚ the survey noted.