South Africa's Business Confidence falls to 12-year low

South Africa's business confidence fell to its lowest in twelve years in July as sentiment continues to be hammered by the weak global and domestic economic environments, a survey showed on Tuesday.

SACCI's business confidence index fell to 90.9 from 94.9 in June‚ reflecting what it described as the negative influences of the domestic and international environments.

“The latest move in the BCI indicates that business confidence remains highly fragile and unpredictable‚” SACCI said.

The business group said that it was concerned about the slowdown of economic growth on a global scale and the widespread downward revision of expected growth rates for SA.

Many analysts have revised their predictions for growth this year down to 2.5% from between 2.7% and 2.9% earlier. The economy grew by 3.1% last year.

“This is especially concerning when the effect this will have on the trade and the current account of the balance of payments is considered‚” SACCI said.