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The SACCI Business Confidence Index (BCI) for October 2010 was released today at the SACCI Offices in Rosebank, Johannesburg.

The SACCI Business Confidence Index (BCI) retreated by 1.9 points from 87.8 in September 2010 to 85.9 in October 2010. This follows on the improvement of 5.8 points from May to September 2010.

Since March 2010, the BCI was on a higher level than the previous year. If compared to October 2009, seven sub-indices of the BCI improved in October 2010 compared to ten sub-indices that improved in September 2010 year-on-year. SACCI is concerned that important contributors to real economic activity, such as retail and manufacturing volumes, recently lost momentum on a month-on-month basis.

In times of economic reticence, the business confidence index becomes more vulnerable to signals from the global business environment. Factors that brought to bear on the index include the strong rand, the continued inflow of excess global short-term funds, volatility in export volumes, the vulnerability of the export mix to commodity price fluctuations and demand instability.

The MTBPS (Medium Term Budget Policy Statement) brought a degree of clarity on government macro-economic policy. However, given the recent record of service delivery performance by government, business will cautiously await the outcomes of policy and fiscal commitments. Improvements in business confidence can only be inspired by credible outcomes that support the business environment on a sustainable basis.