ABN - Business confidence in South Africa has climbed to its highest level in five months, according to a survey by the South African Chamber of Commerce and Industry (SACCI).
SACCI’s monthly business confidence index (BCI) increased from 94.9 in June to 95.3 in July, largely thanks to a firmer currency, falling inflation and an increase in vehicle sales.
The news comes as a boost to the country which suffered the ignominy of having its international credit rating downgraded to junk status, while also slipping into a recession in March.
“Working a country’s way out of a downward phase of the business cycle under normal economic circumstances can be achieved by anti-cyclical policy options that are well known in successful countries,” advised the report.
“However, to find a way out of a recession given a less fortunate credit rating makes it a matter of urgency.”
Meanwhile, South Africa’s President Jacob Zuma has survived a vote of no confidence for the eighth time of his leadership spell, after opposing MPs failed to attain enough support from the African National Congress (ANC).