The South African Chamber of Commerce and Industry Sacci has warned that confidence among the business community could take a further knock after sentiment dipped for a second month in a row prior to the May 29 elections.
The Sacci Business Confidence Index BCI, released yesterday, dipped by 5.8 points in April to 108.9, and further to 107.8 in May a decline of 6.9 points over the two months.
The latest BCI reading indicated a second consecutive month of declining business sentiment, negatively impacted by the domestic elections.
Political developments are of special concern to business given their potential effect on economic policy and the business climate, and the formation of the Government of National Unity GNU is currently uncertain.
Sacci said the formation of the new government, given the election results, will largely determine the future course of business confidence.
