The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The SACCI Business Confidence Index (BCI) for May 2010 was released today.

The Business Confidence Index (BCI) of SACCI decreased by 2.2 index points between May and April 2010 to read 82. The BCI increased steadily to 84.2 in April 2010 but, with the decline in May, the BCI is only 0.8 points higher than in January 2010. This neutralised the gains in business confidence in 2010.

In May 2010, only four BCI sub-indices were positive on a month-on-month basis compared to nine sub-indices that had a positive effect on the BCI in April 2010. Nine sub-indices had either a negative or neutral effect in May 2010 compared to only four that had a negative impact on the BCI in April 2010.

SACCI is concerned that under difficult economic circumstances South Africa is still dogged by debate on the economic model that is appropriate for the country and a spate of labour demands for wage rates well in excess of inflation. The latter developments will prolong the path to recovery and negatively impact growth and job creation prospects.

In May, SACCI expressed deep concern about the ongoing strike by the South African Transport and Allied Workers' Union (SATAWU) and the United Transport and Allied Trade Union (UTATU) and the impact that the strike had on the national logistics infrastructure. SACCI is also currently a leading player in the process to mitigate a national strike relating to the electricity tariff increases by the three domestic labour federations. The NEDLAC process in this regard has commenced. Despite the GDP figures for the 1st quarter 2010 indicating that economic growth has gathered further momentum, the current strike activity, the threats of future labour unrest and financial market developments on the back of global uncertainty may tarnish economic growth prospects later in 2010.

Although the positive sentiment and influx of visitors in relation to the World Cup Soccer may also yet yield positive economic outcomes, it is nonetheless essential that all economic stakeholders realize the critical nature of positive contributions and responsible behaviour in the current fragile economic environment.