JOHANNESBURG – South African business confidence rose in May after a sharp decline in April, as companies adjusted to the oil price shock stemming from the Iran war and vehicle sales rose, data showed on Thursday.
The South African Chamber of Commerce and Industry's business confidence index rose to 124.1 in May from 123.6 in April. In March it was at 131.3.
The chamber, which releases the index every two months, said the modest improvement in May suggests that some of the negative sentiment generated by the global surge in energy prices has begun to wane.
It said the profit was mainly driven by higher new vehicle sales and strong merchandise export volumes, with imports also contributing to a lesser extent.
The decline in foreign tourist arrivals had a significant negative impact on the index, while rising inflation was also a concern for businesses.
Africa's largest economy began to gain momentum last year and expanded more than expected in the first quarter of 2026, but the Iran war has dampened the growth outlook.