South African business confidence slips in second quarter of 2025 on tariff woes
South African business confidence fell in the second quarter of 2025, pressured by trade uncertainties due to US President Donald Trump's "Liberation Day" tariffs and local logistical constraints, a survey showed on Wednesday.
The business confidence index dropped to 40 points from 45 in the first quarter, according to a survey by the Rand Merchant Bank (RMB) and compiled by the Bureau of Economic Research.
South Africa's rand hit an all-time low in April, hurt by the trade war and the risk that the country's coalition government could lead to instability. However, it began to recover after the 90-day tariff pause.
Last week, the central bank cut its repo rate by 25 basis points to 7.25%, lowering its inflation and economic growth forecasts for this year and next year.
The repo rate would provide some relief, the RMB said on Wednesday, but also warned that more was needed to reignite the spark in the country's economy.
The coalition government has been working to boost the country's growth rate through reforms, but persistent challenges, such as logistics bottlenecks at ports and on the freight rail network, are improving only gradually.
Sectors such as retail, new vehicle dealers, builders contractors and manufacturing all reported a fall, RMB said, noting that the wholesale traders segment, which marked an increase in confidence, was the sole exception.
"The majority of the respondents are thus pessimistic about trading conditions. While remaining above the average of 2023 and 2024, confidence is now a touch below the long-term average level," RMB said.
Comments
Projects
Latest Multimedia
Latest News
Showroom
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
