SA economy | Political uncertainty affects business confidence

JOHANNESBURG – The outcome of the elections had a significant impact on business confidence in April and May.

ACCI’s Business Confidence Index dipped by nearly 6 points in April to 108.9 and further to 107.8 in May.

The formation of a new government will largely determine the future course of business confidence. 

A decrease in foreign tourist arrivals and decline in import volumes weighed heavily on the index in May. 

But there were some positives coming out from export volumes and new vehicle sales. 

Local tourism and an improved rand exchange rate had the largest positive year-on-year impact on the index.