FX.co ★ South Africa Business Sentiment Hits 1-Year Low in Q3

The RMB/BER business confidence index in South Africa further declined to 39 in the third quarter of 2025, marking the lowest level since the third quarter of 2024. This decrease follows a previous reading of 40 and is positioned three points beneath the long-term average of 42, largely due to apprehensions surrounding the repercussions of U.S. tariffs. On August 7, U.S. President Donald Trump reinstated tariffs following a three-month hiatus, forcing South African businesses to confront the consequences of an unfavorable trade agreement. "Activities such as front-loading, cancellations, and production holidays in sectors like automotive have also impacted the economic landscape during this period," stated Isaah Mhlanga, Chief Economist at RMB. Of all sectors, manufacturing exhibited the most significant decline in sentiment, plummeting 10 points to 23 amidst persistent global trade uncertainties. Additionally, the retailers index fell by 10 points to 32, and the wholesalers gauge dropped 12 points to 38. However, two sectors—building contractors and new vehicle dealers—experienced an uptick in confidence compared to the weaker readings from the second quarter.