Sacci voices its concern over series of strikes

THE South African Chamber of Commerce and Industry (Sacci) is concerned that the "broader unintended consequences" associated with strikes will have a "lasting impact not only on business confidence but on investor confidence and financial stability".

A five-month wage strike at platinum mines ended towards the end of June‚ while another by steel and engineering sector workers began last week.

The chamber released its business confidence index yesterday, showing it rose slightly to 89.7 in June from 88.9 in May.

The average for the BCI for the first half of 2014 was 91.1 compared with 91.7 for the first half of last year.

The negative annual changes in the BCI grew as 11 of the 13 BCI subindices were in negative territory in June compared with eight in May.

Only share prices and municipal services showed positive levels compared with last year.

Of the six financial subindices‚ only the all share price index of the JSE subindex made a positive contribution to the BCI relative to June last year.

Sacci said the monetary or financial situation had a "notable negative" effect on the business mood in June due to higher inflation and a weak rand.

"A less supportive financial climate for business confidence was prevalent in June‚" Sacci said.

It hoped the current round of labour protest activity would not be protracted in order to limit the adverse effect on an already-fragile economy. – BDlive