Business confidence crashes to lowest level on record

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The RMB/BER business confidence index slumped to five index points in the second quarter, the lowest level since the survey began in 1975

Business confidence plummeted to its lowest level ever recorded during the second quarter, as SA’s already-weak economy grappled with the unprecedented shock of the coronavirus pandemic.

“Covid-19 has drastically changed the already-weak economic landscape and perhaps, in some cases, permanently. We are likely only beginning to fully appreciate the complexity of the economic impacts of this pandemic,” said RMB chief economist Ettienne le Roux. The quarter two survey was conducted between May 13 and June 1, with the fieldwork covering the period during risk level 4 and the announcement of the switch to level 3 on June 1.

 

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