South African business confidence improved sightly in July, though the economy continues to be affected by inflationary pressures stemming from the Iran war, the country’s main commerce chamber cautioned.
A measure of sentiment compiled by the South African Chamber of Commerce and Industry increased to 125.4 from 123.5 in June, it said in an emailed statement Tuesday.
“The continuing war in the Middle East and its destabilising effect on the crude oil price as well as its impact on the supply of fuel are weighing on global economic prospects,” Sacci said.
“It’s not only the inflationary impact, but also the disturbance of trade and spending patterns that is impeding economic activity.”
The conflict in the Middle East initially triggered a surge in oil prices when it erupted in late February, pushing up the cost of fuel in South Africa and prompting the central bank to raise interest rates in May
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