South African business sentiment recovered in the third quarter from an almost three-year low, though power outages, high interest rates and outbreaks of social unrest continue to weigh on confidence. A quarterly business confidence index compiled by FirstRand’s Rand Merchant Bank and Stellenbosch University’s Bureau for Economic Research rose to 33 in the three months through September from 27 in the prior quarter, according to a report published on Wednesday.
Although higher, sentiment is still very weak,” the report noted. “Indeed, the current level of the index suggests that two-thirds of respondents are dissatisfied with prevailing business conditions.” According to the survey, sentiment among manufacturers increased six points to 23, but remained the lowest among the sectors included in the composite index.