SA business mood drops to two-year low on power cuts

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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. Moneyweb BusinessMood

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. A quarterly business confidence index compiled by FirstRand’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.

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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