South African business confidence rose slightly in July, helped by an increase in trade volumes and new vehicle sales, data showed on Wednesday.

The South African Chamber of Commerce and Industry (SACCI) monthly business confidence index (BCI) edged up to 110.3 in July from 108.5 in June.

“The July 2022 BCI number indicates the business climate is gradually returning to normality,” SACCI said in a statement, after Africa’s most industrialised nation was dealt a severe blow by the Covid-19 pandemic, riots in 2021 and damaging floods in April this year.

Despite the pickup in the headline BCI number, SACCI cited price pressures, a volatile rand exchange rate and higher interest rates as weighing on the local business environment.

SACCI said the reference point for the BCI had been adjusted to make 2020 the base year, reflecting changing trends in the economy and financial markets.