Business mood nosedives to two-year low on load shedding | Business

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South African business sentiment declined to a two-year low in the first quarter as severe power outages and dilapidated logistics networks hobbled economic activity. | News24_Business

A quarterly business confidence index compiled by FirstRand Ltd.’s Rand Merchant Bank unit and Stellenbosch University’s Bureau for Economic Research fell to 36 in the three months through March from 38 in the prior quarter. That’s the lowest level since the first quarter of 2021, when executives were concerned about the fragile nature of South Africa’s recovery from the damage wrought by the Covid-19 pandemic.

The survey of 1 050 senior executives in sectors including manufacturing, retail and building was carried out between February 8 and 27. State power utility Eskom subjected the country to record blackouts of as much as 12 hours on multiple days during the period to protect the national grid from collapse as its aging and poorly maintained coal-fired power plants struggled to meet demand.

Gauges tracking manufacturing and retail sentiment"nosedived" in the quarter, leading to a decline in the overall index, RMB said. Manufacturing confidence dropped by nine points to 17, a level last seen about three years ago when the country imposed severe restrictions on economic activity and peoples’ movement to curb the spread of virus.

"A level this low is rare, and it speaks to a sector that is bearing the brunt of the combined impact of intense load shedding and dilapidated and poorly run logistic infrastructure," RMB said.

 

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_Business Today I closed my once very successful business. Lot of people without jobs now. Families without an income. I had enough.... immigrating to New Zealand in a month. Good luck SA... I wish you all the very best!

_Business I'm tired of pretending Please educate... What does 'declined to a 2-year low' mean

_Business Vote 🗳️ vote 🗳️ vote 🗳️ f…. Anc

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