The South African Chamber of Commerce and Industry (Sacci) Business Confidence Index (BCI) improved to 93.9 in November, despite a depressed domestic and global economy and further harmful domestic sociopolitical “diversions that unfavourably influenced the business climate”.

The improvement was attributed to businesses adjusting to the unpredictability of current circumstances, with Sacci stating that business flexibility had contributed to the slightly improved business confidence of the last two months.

It added that businesses also continued to show determination and agility.

“Notwithstanding the volatility in the business climate, the present turnaround in the BCI could gather more momentum,” Sacci said.

Positive monthly contributions to the BCI mainly came from the real value of building plans passed, new-vehicle sales and manufacturing output.

Merchandise export volumes, retail sales volumes, share prices and energy supply and costs made the largest negative month-on-month impacts on the BCI in November.

Year-on-year, real business conditions were also slightly better in November. One of the seven real business subindices improved and one remained unchanged. The year-on-year financial climate remained positive with two of the six financial subindices having improved and one remaining unchanged.

Meanwhile, Sacci pointed out that the country had received a reprieve from all three rating agencies in their latest credit rating reviews. “The prospects for a more induced and inclusive economic growth climate and attention being paid to notably public finance matters, counted in South Africa’s favour.

“It is important that the negative outlook by all three rating agencies be turned around in the next six months,” it stated.

Sacci said progress made by the National Treasury with the participation of business and labour to recognise and assist in driving the economy forward, would partially restore credibility to the economy and may contribute to the recent momentum gained in improving business and investor confidence.