SA business confidence jumps as hopes grow

SA business confidence jumps as government hopes grow. The index jumped to 118,1 in November from 114,2 in October and 110,2 the month before, the chamber said yesterday.

South Africa’s business confidence soared to the highest level in nine years last month, suggesting a significant improvement in the economic outlook as businesses take encouragement from the country’s new governing alliance.

An index compiled by the South African Chamber of Commerce and Industry jumped to 118,1 in November from 114,2 in October and 110,2 the month before, the chamber said yesterday. It’s at the highest level since October 2015, according to data compiled by Bloomberg.

“The broader political representation in the administration of national government has facilitated a positive assessment of economic prospects by business,” Sacci said.

“This positive assessment spilled over into the business climate, improving sentiment and stability.”

After losing its outright majority in May elections, the African National Congress turned to the centrist Democratic Alliance and eight other smaller parties to form a business-friendly coalition.

The so-called government of national unity has made growth and job creation its top priority after years of disappointing economic performance.

South African growth unexpectedly shrank 0,3 percent in the third quarter after farm output slumped. Overall growth was just 0,4 percent in the first nine months of the year.

SACCI said this disappointing performance showed the importance of galvanising cooperation between the private and public sector. — Bloomberg.