The South African Chamber of Commerce and Industry (SACCI) May Business Confidence Index (BCI) increased by 7.2% year-on-year.
SACCI Noted that the average for first quarter 2026 was 7.6% higher than a year earlier.
performance below optimal
SACCI said economic activities such as retail trade, manufacturing production, passed building schemes and mining production are not performing well due to the constraints.
“These activities play an important role in strengthening business confidence,” SACCI said.
In his view, high share prices reflect expectations rather than stable economic substance.
PMI support BCI
South African businesses improved in the first two months of the second quarter despite disruptions caused by the Middle East war. This is reflected in two purchasing manager indices (PMIs).
Readings above 50.0 indicate an improvement in business conditions over the past month, while readings below 50.0 indicate a deterioration.
The BER Manufacturing PMI declined to 50.8 in May from 52.6 in April.
The S&P global private sector PMI declined to 49.6 in May from 51.6 in April.
it was the first time private sector The PMI had fallen below the neutral 50-point mark in five months.
S&P Global said that despite a worsening business environment in May, a good pipeline of new work, advertising plans and expectations of stable market conditions supported confidence in the year-ahead outlook for business activity. In fact, sentiment strengthened and was the highest year-to-date.
possibilities
The fact is that given the growth in the first five months of the year, SACCI May BCI is up 7.2% year-on-year, leading to a better 2026 than 2025.
This is especially the case given the disruption caused by the Middle East. It is expected that the Strait of Hormuz will be opened soon which will further increase business confidence.