The South African Chamber of Commerce and Industry (Sacci) Business Confidence Index (BCI) contracted to 81.6 in September 2015.
Since February 2015, the Sacci BCI has declined by 11.2 points sand is 7.6 index points lower than in September 2014.
Sacci economist Richard Downing said the deterioration in business confidence in 2015 had gained momentum and resembled the intensity and pace that marked the decline of the BCI in 2007/08. However, import volumes, retail and manufacturing had improved on last year, he said.
Downing expressed concern that, against the global economic backdrop, the prospects for Africa – and notably those heavily dependent on commodity export volumes and US-dollar prices – might become desperate. ”It is particularly worrying that Africa’s external debt levels are rising,” he said.
Downing pointed out that although the South African economy was more diversified than most economies in Africa, with mining (commodities) notably playing a lesser role, the SA economy was already experiencing slow growth of below 2%.
“A further decline of 1 percentage point would have serious consequences for the Balance of Payment, public sector entities, public finance and employment that are already under strain,” he said.
