Confidence still sensitive

BUSINESS confidence remains "sensitive" and "vulnerable" owing to the increasing number of strikes, according to the SA Chamber of Commerce and Industry.

BUSINESS confidence remains "sensitive" and "vulnerable" owing to the increasing number of strikes, according to the SA Chamber of Commerce and Industry.

The SACCI says the economy might be at "a tipping point" and will be "adversely impacted" if industrial action is not appropriately managed.

The chamber yesterday released its July business confidence index, which remained "virtually unchanged", rising by 0,1 point to 83,2 in July from 83.1 in June.

Only higher export volumes and lower inflation had a positive effect on the BCI last month compared with six positive sub-indices in June.

Though the monthly changes in the other sub-indices were neutral or negative, the movements were subdued and did not pull the BCI below the June figure.

Efficient Group economist Dawie Roodt said strike actions were not good for business considering the current economic climate.

He said in the next three months the index would be affected by these industrial actions. - Kea Modimoeng

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