JOHANNESBURG – South African business confidence weakened to a five-month low in March, hit by a weak rand currency, a trade slowdown and a share price decline linked to 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 offsetting 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 investor confidence was rising, supported by low inflation and the government's commitment to an improving fiscal picture.
Before the Iran war the government was forecasting growth to pick up further this year, although it will likely revise down its 1.6% growth forecast for 2026.