Port Elizabeth continues to benefit from growing business confidence, with the first half of the year reflecting "significant economic buoyancy".

This is the verdict of Dr Neal Bruton in his summary of the June PE Economic Indicators report that he compiles monthly for the PE Regional Chamber of Commerce and Industry.

The index has shown consistent growth throughout the year, shrugging off what Bruton says appeared to be the beginning of some consolidation earlier on in the index's high level.

He says that probably the most significant contributor to growth in the index was a sharp decline in local inflation during the month.

"Low rates of interest, low and controlled levels of inflation and ongoing growth in real personal disposable income have also encouraged the trend cycle in real retail sales for the Eastern Cape to an all time high, with ongoing steady rates of month-on- month growth," says the report.

This was backed up by growth in all trend cycles, bar the exchange rate.

Local sales of new passenger cars was another highlight, with the trend cycle posting a month-on-month growth rate in excess of three per cent for the third consecutive month.

Bruton says long-term confidence was underpinned by accelerating momentum in the real values of buildings completed and building plans passed, which had reflected some uncertainty in the early part of the year.

Passenger arrivals at Port Elizabeth airport continued unabated, reflecting escalating interest in the region.

Bruton said on Monday the strike last week by SAA was unlikely to have a substantial impact on the July index as his methodology compensates for radical changes.

"As has been the case for a number of months now, the immediate future for the economy of the metro looks positive and, outside of unexpected developments, the upward momentum in the Port Elizabeth economic indicators appears set to continue," concluded the report.