FX.co ★ South Africa’s Business Confidence Slips in May, Signalling Softer Economic Sentiment

Business confidence in South Africa weakened in May 2026, with the key indicator easing to 124.1 from 131.3 recorded in February 2026. The latest reading, updated on 11 June 2026, points to a cooling in sentiment among firms after a more optimistic start to the year.

While the index remains above the 100-point mark often associated with neutral confidence, the decline suggests that businesses are becoming more cautious about the near-term outlook. The pullback from February’s level may reflect growing concerns in the operating environment, even as activity remains relatively robust by historical standards.

The May reading underscores a shift in mood that investors and policymakers will be watching closely, as sustained declines in business confidence can translate into slower investment and hiring decisions, potentially weighing on South Africa’s economic momentum in the months ahead.