The business confidence index for May declined by two index points to 99.4 from 101.4, the SA Chamber of Business (Sacob) said on Tuesday.

"It is the first time in 2006 that the BCI dropped below the favourable level of 100," Sacob said in a media statement.

"All the 'financial' sub-indices turned negative and four of the seven 'real activity' sub-indices had a positive impact on the BCI.

"These developments influenced the business mood adversely and affected business behaviour," the chamber said.

It added that the recent spate of violent criminal attacks raised South Africa's security-threat profile.

"They are concerns that pervade both business and public sentiment, and reflect the low level of public confidence in the criminal justice system," Sacob said in a media statement.

The chamber was referring to last Sunday's attack in which four police officers died in a fierce gun battle in Jeppestown.

The four police officers' murder brought to 19 the tally of police deaths in Gauteng since the start of the year. There were 23 police killed in the whole of 2005.

Sapa

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