Business confidence in South Africa weakened in the first quarter of 2024. Ongoing Wednesday's survey revealed load shedding, port congestion and inflation.
The business confidence index fell to 30 points. 1st quarter That's up from 31 points in the past three months, according to a survey compiled by Rand Commercial Bank (RMB) and the Bureau of Economic Research.
RMB Chief Economist and Head of Research Isah Mhlanga said: “Similar supply constraints, including loading restrictions, logistical challenges and heightened international and domestic policy uncertainty, are putting South African businesses in a bind. I'm depressed,” he said.
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Retail industry confidence fell 13 points from the previous quarter to 34 points. under Due to sluggish demand for durable consumer goods, Overall Retailer profitability decreases.
The country's manufacturing industry is being held back by weak domestic and export demand. According to research. Confidence in the manufacturing industry fell 5 points to 21 points.
“Alarmingly, respondents expressed even more pessimism about future investment and business conditions,” the report said. Said.
Meanwhile, construction companies, wholesalers and auto dealers continued to perform well as contractor activity improved and demand for consumer goods increased.
meanwhileSouth Africa's private sector activity expanded for the first time in six months in February as staffing and purchasing levels increased in response to stronger confidence. of The S&P Global South African Purchasing Manager Survey revealed on Tuesday.
“Looking further ahead, expectations for easing inflation…and lower borrowing costs due to an expected shallow cycle of cuts in policy rates could help local consumer demand in the second half of the year.” Mr Mhlanga of RMB said:.
