SA business confidence slips

JOHANNESBURG – South Africa’s business confidence eased further in June and could be further undermined by rising crime as shown in the latest official statistics, the South African Chamber of Business (SACOB) said yesterday.

SACOB’s Business Confidence Index (BCI) retreated to 99,1 in June from May’s 100,2 resuming a downward trend since the beginning of the year that only paused briefly in April. “Business confidence seems to be going through a mild downward adjustment after the buoyant but relatively stable business mood experienced in 2005 and 2006,” SACOB said in a statement.Indications that domestic consumption demand could be moderating in response to higher interest rates could help to prevent a further tightening of business conditions by monetary authorities, SACOB said, adding however: “It is unfortunate that such positive developments are marred by the criminality as revealed by the latest crime statistics.”Statistics released earlier this week showed that while there was a 3,4 per cent overall decrease in “contact crime” for the 2006/7 financial year, a breakdown showed that many of South Africa’s most feared crimes including murder, bank robbery, housebreaking and carjacking were all up over the period.”The statistics imply that the application of law and order functions as performed by the state does not succeed in rolling back criminality or discouraging unruly elements,” SACOB said.Nampa-Reuters”Business confidence seems to be going through a mild downward adjustment after the buoyant but relatively stable business mood experienced in 2005 and 2006,” SACOB said in a statement.Indications that domestic consumption demand could be moderating in response to higher interest rates could help to prevent a further tightening of business conditions by monetary authorities, SACOB said, adding however: “It is unfortunate that such positive developments are marred by the criminality as revealed by the latest crime statistics.”Statistics released earlier this week showed that while there was a 3,4 per cent overall decrease in “contact crime” for the 2006/7 financial year, a breakdown showed that many of South Africa’s most feared crimes including murder, bank robbery, housebreaking and carjacking were all up over the period.”The statistics imply that the application of law and order functions as performed by the state does not succeed in rolling back criminality or discouraging unruly elements,” SACOB said.Nampa-Reuters