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The SACCI Business Confidence Index (BCI) measures how financial and economic factors impact businesses over time. In October 2023, it held steady at 108.6 but saw a boost to 111.5 in November 2023, using 2020 as the base year at 100. However, when we compare it to November 2022 (when it stood at 110.9), the latest BCI suggests that the business climate and economic conditions didn't provide the spark for increased confidence over the medium term.

The SACCI BCI inched up from an average of 109.0 in the first eleven months of 2022 to 109.4 for the same period in 2023. Unfortunately, it seems like there's a lack of positive momentum in business confidence, with several lingering economic challenges yet to be resolved.

Between October and November 2023, eleven out of fourteen BCI sub-indices either showed positive changes (six) or remained virtually unchanged (five). Three sub-indices had a negative impact on business confidence during this period. The BCI improved by 2.9 index points from October to November 2023. Notably, inward tourism and merchandise import volumes made the most positive contributions to business confidence in November 2023.

On a year-on-year basis, the BCI only improved by 0.9 index points compared to the 2.9 index point increase from October to November. Increased inward tourism, higher merchandise import volumes, and lower core inflation were the standout positive contributors on a year-on-year basis. However, fewer new vehicle sales, the weaker and more volatile rand exchange rate, and high real financing costs were the main negative factors impacting business confidence negatively in November 2023 compared to a year ago.

While the SACCI BCI did recover a few index points in November 2023, it's important to note that this doesn't necessarily mean the business climate has become favorable or that upward momentum is fully restored. 

Much of the positive vibe came from civil society and businesses showing resilience and endurance. Swiftly addressing and resolving painful adjustments by the public sector could potentially restore upward momentum in business and, more crucially, inspire investor confidence for a higher economic growth rate. Creating such a positive environment requires fostering appropriate international relations and ensuring supportive human and fixed capital stocks, especially in a dynamic economy like South Africa's.

Issued by SACCI