JOHANNESBURG, April 21 (Reuters) – South African business confidence weakened in March to a five-month low due to a weaker rand currency, a slowdown in trade and a share price slide over the Iran war, data showed on Tuesday.
The South African Chamber of Commerce and Industry's business confidence index fell to 131.3 in March from 134.6 in February.
The chamber, which releases the index every two months, said business uneasiness was reflected in weak real economic activity, including retail trade and export volumes.
Businesses were concerned about energy supplies and costs due to the Middle East conflict.
It said South Africa was in a fortunate position due to an extraordinary increase in business confidence at the end of last year, which was somewhat mitigating the impact of the Iran conflict.
It said rising new vehicle sales, more foreign tourists and low inflation had a positive impact on business confidence in March.
South Africa's economy began to gain momentum last year and the government's commitment to low inflation and a better fiscal picture was boosting investor confidence.
Before the Iran war the government was forecasting growth to pick up further this year, although its 1.6% growth forecast for 2026 may have to be revised down.