The South African Chamber of Commerce and Industry (Sacci) Business Confidence Index (BCI) improved by 1.9 index points month-on-month to 93.7 in April.

The latest figure is nonetheless 2.3 index points below the 96 points measured in April 2018.

Five of the thirteen subindices of the BCI improved on their March readings, while five remained unchanged and three declined.

The five that improved were the rand exchange rate against the major trading and investment currencies, higher share prices on the JSE, and increased real value building plans passed, real retail sales and merchandise import volumes.

A number of events impacted on the business climate and business confidence during April, said Sacci, including a massive increase in political party campaigns in the run-up towards the national elections.

“The common theme of election manifesto policies among the parties was to drive economic growth and job creation, which seemed to resonate well with the markets.”

The chamber added that the one-off nature of political campaign activities that include high expenditure on printing and advertising may lull one into a false sense of comfort about business confidence.

“The abrupt absence of load-shedding is by no means an indication that all is well at Eskom, for example, yet the benefit of this absence, increased campaign spend and other favourable events benefit businesses and increase business confidence. Although one-off, the benefit cannot be taken for granted, it is most welcome by business,” Sacci said.

The capital and financial markets remained relatively stable during April. The rand strengthened, but remained unstable.

The outcome of elections should bring more clarity to business and enhance better planning and decisionmaking.

Business and investor confidence will become pivotal to the economy and the business climate in the second half of this year, Sacci stressed.