South African business confidence rose in July, helped by higher new vehicle sales, rising manufacturing output, strong precious metals prices and well-contained inflation, data showed on Wednesday.

The South African Chamber of Commerce and Industry’s Business Confidence Index rose to 116.7 in July, up from 113.2 in June.

The business chamber releases the index every two months. June’s business confidence level was lower than May’s 115.8 reading before July’s rebound.

The chamber said the 30% tariff on South African exports to the U.S. that kicked in last week could weigh on sentiment in the remainder of the year.

“The imposition of a general tariff of 30% by the USA on exports from South Africa to the USA could have unintended and austere consequences for the South African economy and for longer-term business relations,” the South African Chamber of Commerce and Industry (SACCI) said in a statement.

South African officials were planning to submit a revised trade deal offer to Washington on Tuesday to try to secure a lower tariff or exempt major industries.

Months of negotiations with U.S. President Donald Trump’s administration have so far failed to produce a deal.

SACCI said it was important that South Africa does everything possible to have positive trade relations with the U.S. given subdued economic growth forecasts for this year and next.

Reuters

The post Business confidence edges up in July ahead of Trump’s 30% tariff appeared first on Inside Politic.

South African business confidence edged up in May after a steep drop in the previous month, helped by a stronger rand, rallying stocks on the Johannesburg bourse and high gold and platinum prices, data showed on Wednesday.

The South African Chamber of Commerce and Industry’s Business Confidence Index rose to 115.8, up from 114.9 in April but lower than March’s 123.5 reading.

The rand gained more than 3% against the dollar in May, lifted by strong precious metals prices, hopes for a lower inflation target and signs that the budget would pass after months of coalition disagreements.

The Johannesburg Stock Exchange set repeated record highs.

The business chamber releases the index every two months.

April’s steep fall was likely caused by U.S. President Donald Trump’s “Liberation Day” tariffs and the ensuing global trade war.

South Africa has since made a series of trade proposals to the U.S. after a White House meeting between President Cyril Ramaphosa and Trump last month.

The chamber called Ramaphosa’s trip to Washington timely to nurture business and economic ties.

Now that a third budget version has been accepted by major political actors, policymakers should focus on growing the economy, boosting investor confidence and creating employment, it said.

“South Africa should attend to matters that scare off investors – especially foreign investors,” it added.

Reuters

The post Business confidence edges up in May after big drop in prior month appeared first on Inside Politic.