Fears of downgrade hit SA sentiment

South Africa's business confidence index dips in November amid lingering uncertainty about a possible credit downgrade.

Johannesburg - South Africa's business confidence index fell in November due to lingering uncertainty about a possible local sovereign credit downgrade and the timing of US interest rate hikes, a survey showed on Thursday.

The Business Confidence Index (BCI) fell to 82.7 from 88.4 in October, but remained slightly above the level registered in September.

“(In November) The domestic economy performed below potential and with the world economic outlook below expectations,” the South African Chamber of Commerce and Industry (SACCI) said in a statement.

“Locally the credit ratings and the interest rate decisions in the United States could have an important impact on the wavering South African economic landscape.”

South Africa needs to urgently impose policies that will help its economy take advantage of recoveries in other regions, including the US and India, SACCI said.

REUTERS