FX.co ★ South Africa Q3 Business Confidence at 2-Year Low

South Africa’s RMB/BER Business Confidence Index slipped to 38 in Q3 2026 from 39 in the previous quarter, its weakest level since Q3 2024. Persistent uncertainty stemming from the ongoing conflict in the Middle East, combined with softening domestic demand, continued to weigh on business sentiment.

Four of the five sub-indices declined. The sharpest drop was in new-vehicle dealer confidence, which fell by 11 points to 38, as stock levels increasingly outpaced demand. Although new-vehicle sales improved, they were nearly offset by weaker second-hand sales. Manufacturing confidence also eased, to 27 from 31, with subdued domestic demand and softer export performance constraining activity. Capacity utilisation fell further, underscoring the presence of significant spare capacity in the sector.

“Business confidence has stabilised, but at a level that remains too low to support the stronger investment and employment growth South Africa needs,” said Isaah Mhlanga, Chief Economist at RMB.