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The SACCI Business Confidence Index (BCI) for January 2011 was released today at the SACCI Offices in Rosebank, Johannesburg.

The SACCI Business Confidence Index (BCI) maintained a level above 87 as the reading for January 2011 declined marginally to 87.4 from 87.6 in December 2010. The BCI was 6.2 index points higher in January 2011 than in January 2010 and this is the largest year-on-year (y/y) difference since March 2010 when, the index started to exceed the previous year’s level.

Nine of the sub-indices gathered positive momentum as compared to a year ago. Those sub-indices which remain in negative territory should recover as economic growth improves during 2011 provided that relative price stability is maintained. On a month-on-month comparison, the BCI did not show important changes in January 2011 except for the sub-index on the rand exchange rate. All the other indices remained steady while the positive contribution of manufacturing was notable.

The World Economic Forum (WEF) identified its theme for 2011 as “Shared Norms for the New Reality”. The challenge remains how South Africa will align itself to these realities by being an active participant to the benefit of the world economy and domestic economic role players. The theme of South Africa’s competitiveness should underpin all dialogue and negotiations between government, business, and labour in 2011.
There are areas within the South Africa where global competitiveness ratings and the rigidity of markets raise serious questions for sustainable growth over the longer term. Business confidence would benefit in both the short and long-term if there are active steps towards addressing these concerns.