Business confidence in South Africa has declined from 45 (RMB/BER Business Confidence Index) in the first quarter of 2018 to 39 in the second quarter.
According to RMB, this means that close to three-fifths of respondents to its survey consider business conditions as unsatisfactory.
It reckons the first quarter’s exuberance was mainly the cause of “euphoria” over the change in South Africa’s leadership.
Now, it seems, the reality of a contracting economy is kicking in.
Not only did business activity remain disappointingly weak – worsening even, in some sectors – but 'Ramaphoria' also faded in the wake of the ever-rising petrol price, the political debate around 'expropriation of land without compensation' intensifying, and growing signs that the strong synchronised global economic upswing has started to fizzle out.— Rand Merchant Bank
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