Middle East Conflict Weighs on South Africa's Trade Conditions

The South African trade conditions remained under pressure in June, according to the latest survey from the South African Chamber of Commerce and Industry (Sacci). The Trade Conditions Survey reported a seasonally adjusted 36 points in June, but experts believe that conditions may improve later in the year.

The Middle East conflict had a significant impact on trade conditions, affecting fuel supply and crude oil prices. Crude oil prices peaked at $119 (R1,960) at the end of April, which led to a marked effect on fuel prices at the pump and throughout the supply chain, escalating inflation rates.

Scci reported that 75% of respondents in the April survey recorded a rise in input costs. However, with crude oil prices returning to $72 (R1,187) at the end of June, there was a positive effect on business and trade conditions in June.

Experts predict that trade conditions may improve in the next six months, given the intrinsic resilience of the SA economy. However, the ongoing conflict in the Middle East remains a concern for trade conditions.