FX.co ★ South Africa Business Sentiment Weakens in Q2

The RMB/BER business confidence index in South Africa dropped by 8 points to 39 in Q2 2026, its lowest reading since Q3 2025. This decline erased the gains of the previous two quarters and pushed the index just below its long-term average of 40. The renewed downturn came as businesses faced mounting pressure from the conflict in the Middle East, which has blurred the outlook for inflation and interest rates. Confidence fell across all sectors, with consumer-focused industries hit hardest. “Businesses have had to adjust quickly to a less supportive outlook, which weighed on sentiment across most sectors,” said Isaah Mhlanga, chief economist at RMB. “Many respondents indicated that uncertainty had increased and that clients had become more cautious about spending and investment decisions,” he added.