LEAD: South Africa business confidence dips for fourth straight month

Nov 3, 2011, 11:34 GMT

Johannesburg - The business confidence index compiled by the South African Chamber of Commerce and Industry (SACCI) dipped for the fourth month in a row to 97.5 in October, from 98.4 the previous month.

Business confidence was 'very fragile,' SACCI said in a statement.

Global crises notwithstanding, the country still had 'relative financial stability,' the chamber said.

Volatility in the country's currency, the rand, which has swung in recent months in connection with the eurozone crisis, also contributed to concerns.

The chamber linked 'sluggish borrowing by business and households' to fears about economic prospects and a lack of clarity moving head.

Earlier on Thursday, a top South African official voiced concern over an increasing number of highly indebted families in the country.

'We've spent money we haven't earned yet and we've spent it on goods that we don't need,' said Trevor Manuel, the country's planning minister and former finance minister.

Manuel blamed rampant consumerism for the woes.

About 8.8 million of South Africa's 18.84 million credit-active people 'are in trouble,' said Manuel, as they had 'impaired credit.'

The number of credit-active South Africans is nearly double the number of citizens in formal employment.

Manuel was also quoted by news agency SAPA as warning about a low savings levels. Lacking nest eggs, people were taking loans at predatory rates when they needed cash, he said.

He was speaking at a national consumer forum outside of Johannesburg.