South African business confidence edges up in May after big drop in prior month – Nsemkeka
South African business confidence edged up in May after a steep drop in the previous month, helped by a stronger rand, rallying stocks on the Johannesburg bourse and high gold and platinum prices, data showed on Wednesday.
The South African Chamber of Commerce and Industry’s Business Confidence Index rose to 115.8, up from 114.9 in April but lower than March’s 123.5 reading.
The rand gained more than 3% against the dollar in May, lifted by strong precious metals prices, hopes for a lower inflation target and signs that the budget would pass after months of coalition disagreements.
The Johannesburg Stock Exchange (.JALSH), opens new tab set repeated record highs.
The business chamber releases the index every two months.
April’s steep fall was likely caused by U.S. President Donald Trump’s “Liberation Day” tariffs and the ensuing global trade war.
South Africa has since made a series of trade proposals to the U.S. after a White House meeting between President Cyril Ramaphosa and Trump last month.
The chamber called Ramaphosa’s trip to Washington timely to nurture business and economic ties.
Now that a third budget version has been accepted by major political actors, policymakers should focus on growing the economy, boosting investor confidence and creating employment, it said.
“South Africa should attend to matters that scare off investors – especially foreign investors,” it added.