South African business confidence improved slightly in July, though the economy continues to be affected by inflationary pressures stemming from the Iran war, the country\u2019s main commerce chamber cautioned.<\/p>\n\n\n\n
A measure of sentiment compiled by the South African Chamber of Commerce and Industry increased to 125.4 from 123.5 in June, it said in an emailed statement Tuesday.<\/p>\n\n\n\n
\u201cThe continuing war in the Middle East and its destabilising effect on the crude oil price, as well as its impact on the supply of fuel, are weighing on global economic prospects,\u201d Sacci said. <\/p>\n\n\n\n
\u201cIt\u2019s not only the inflationary impact, but also the disturbance of trade and spending patterns that is impeding economic activity.\u201d<\/p>\n\n\n\n
The conflict in the Middle East initially triggered a surge in oil prices when it erupted in late February, pushing up fuel costs in South Africa and prompting the central bank to raise interest rates in May to counter higher price growth.<\/p>\n\n\n\n
Domestic inflation accelerated to 5% in June \u2014 the fastest pace in two years and above the central bank\u2019s 3% target with a one percentage point tolerance band on either side.<\/p>\n\n\n\n
\u201cA stricter Reserve Bank monetary policy stance and slow economic growth emphasise the impact of the uncertainty created by the present inflationary process,\u201d Sacci said. <\/p>\n\n\n\n
\u201cThe action of the Reserve Bank to contain inflation is a necessary policy instrument to ensure that the real effect of price instability is addressed.\u201d<\/p>\n\n\n\n
The monetary policy committee kept rates on hold at its last meeting to monitor price pressures. <\/p>\n\n\n\n
Forward rate agreements, which are used to speculate on borrowing costs, are pricing in a 72% chance that the benchmark rate \u2014 currently at 7% \u2014 will rise by 50 basis points by the end of the year.<\/p>\n\n\n\n
The biggest positive contributors to the Sacci reading in July were new-vehicle sales, export volumes and softer energy prices, while higher inflation and lower precious metal prices were negatives.<\/p>\n\n\n\n
\u201cThe number of overseas tourists remains a major positive driver for business confidence,\u201d it said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Business confidence has improved in South Africa, despite inflationary pressure from global events.<\/p>\n","protected":false},"author":59,"featured_media":643961,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2089657822128607646","_sma_facebook_post_id":"191437357620492_2179677866185946","_sma_instagram_post_id":"17911786314451507","_sma_x_attempts":1,"footnotes":""},"categories":[9872],"tags":[26204,2924,1744],"class_list":["post-870752","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-chamber-of-commerce-and-industry","tag-reserve-bank","tag-sacci"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/870752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=870752"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/870752\/revisions"}],"predecessor-version":[{"id":870760,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/870752\/revisions\/870760"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/643961"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=870752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=870752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=870752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}