SA Business Confidence Falls to Year Low as Tariffs Bite
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South African business confidence has dropped to its lowest level in a year, showing how worried companies are about the economy.
The RMB/BER Business Confidence Index fell to 39 points in the third quarter. At this level, confidence is too weak to encourage new investment or job creation.
What’s Behind the Decline?
New US tariffs introduced in August are putting pressure on exports. A 30% levy on South African goods has already hurt industries like automotive and agriculture, with about 30,000 jobs at risk. In the car sector, there were reports of front-loading orders, cancellations, and even temporary production stoppages.
Sector Breakdown
Manufacturers are the most pessimistic, dropping to 23 points.
Retailers fell to 32 points, as household spending remains under pressure.
Wholesalers dropped to 38 points, showing weaker demand.
Builders improved to 46 points, supported by some recovery in construction activity.
Vehicle dealers rose sharply to 54 points, helped by lower interest rates.
The Bigger Picture
South Africa’s economy has been stuck in low growth for more than a decade, with one of the highest unemployment rates in the world. Weak confidence reflects ongoing challenges such as poor service delivery at municipal level, corruption, red tape, and unreliable logistics.
Economists warn that reforms in infrastructure, water, and local government must speed up if South Africa is to turn sentiment around and unlock growth.
👉 Bottom line: With tariffs weighing on exports and confidence sliding, South Africa’s road to economic recovery looks more uncertain than ever.
