JOHANNESBURG, March 14 (Xinhua) -- South African business communities have experienced the best trade conditions in February since the formation of the Government of National Unity (GNU).

According to a survey released Friday by the South African Chamber of Commerce and Industry (SACCI), the country's largest chamber of commerce, most of the components of trade activity improved in February.

The sales volumes sub-index increased from 41 in January to 47 in February, while other trade components, such as new orders, supplier deliveries, inventory levels, and sales prices, also improved.

"It would appear that the actions taken by the GNU to enhance economic performance are having a positive effect on the business environment," said Alan Mukoki, chief executive officer of the SACCI.

South Africa formed the GNU by 10 political parties after the May 29 elections last year. According to the SACCI, about 65 percent of surveyed respondents experienced "tight" trade conditions in December, some 60 percent in January and 54 percent in February.

Mukoki also cautioned the negative impact of rising input costs on trade conditions. About 94 percent of respondents expect input costs to increase in the next six months, with 86 percent expecting rising sales prices, which is likely to fuel inflation, he said. Enditem

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