BUSINESS CONFIDENCE RECOVERS FROM 34-YEAR LOW IN SEPT – SACCI

South African business confidence improved in
September, recovering from a 34-year low in the previous month as exports and
vehicle sales increased while economic activity picked-up, a survey showed on
Wednesday.

The South African Chamber of Commerce and
Industry’s (Sacci) monthly business confidence index (BCI) rose to 92.4 in
September from 89.1 in August.

Seven sub-indices of the index improved and three
remained unchanged between September and August.

“Positive annual contributions in September
came from the higher dollar price of precious metals, energy supply – the
latter mainly owing to a decline in the crude oil price,” Sacci said in a
statement.

“There are indications that the economy may
have hit a trough and could obtain some stability which could auger well for
growth prospects,” the business body said.

Africa’s most industrialised economy expanded 3.1%
in the second quarter after contracting by the same margin in the first, and analysts
are divided on whether the momentum can be sustained due to the slow speed of
policy and economic reforms.

Finance Minister Tito Mboweni’s mid-term budget speech due on October 30 will be closely watched for details on the restructuring of state-owned power utility Eskom and progress on reviving tax revenues. http://www.engineeringnews.co.za/article/business-confidence-recovers-from-34-year-low-in-sept-sacci-2019-10-09/rep_id:4136