JOHANNESBURG– Business confidence in South Africa rose in January from the prior month, helped by higher commodity prices and an increase in new vehicle sales, a survey showed on Tuesday.
The South African Chamber of Commerce and Industry’s (SACCI) monthly business confidence index (BCI) rose to 97.7 in January from 93.8 in December.
SACCI said it expected conditions that could boost business confidence and attract investment and economic growth.
Africa’s most industrialised economy is struggling to attract investment, with sentiment dimmed by political uncertainty, weak growth that has hit consumer activity, as well as the looming threat of credit downgrades to junk.
The country is recovering from its worst drought in history which wilted crops and stoked food inflation.
Slower inflation will help the economy this year along with higher commodity prices, although worries about low investment rates and the political environment continue to weigh.