Business Confidence drops in 2nd quarter

The Business Confidence Index (BCI) produced by Rand Merchant Bank and the Bureau for Economic Research has declined by five points to reach 40-points in the second quarter of 2025.

This implies that only four out of 10 business respondents in the most cyclically sensitive sectors of the economy were satisfied with prevailing business conditions.

Respondents flagged ongoing global trade uncertainty and persistent local logistical challenges as key drags on business prospects.

RMB Economist Keabetwe Mojapelo says, “Consumer goods’ traders reported significant sales drops signalling potential weakness in household demand in the second half of the year. Retail trade conditions also worsened slightly from the first quarter with confidence dropping eight points to 42, a level mirrored by motor dealers.  Still, respondents remain relatively optimistic about business conditions and sales volumes indicating that consumer resilience persisted in the construction sector particularly residential contractors have yet to feel the benefits of past interest rate cuts, including last week’s. These rate cuts may not be sufficient to reverse the trend.”