Business sentiment in South Africa strengthened in the final quarter of 2025, with the RMB and Bureau for Economic Research Business Confidence Index rising five points to 44. The improvement places confidence slightly above the long-term average, according to the latest survey published by Reuters, which cited data from RMB and BER.
Confidence increased across five of the six sectors covered in the survey. Retail, wholesale, manufacturing, motor dealerships and services all reported stronger sentiment, while only building contractors saw a decline, with their index easing to 39. The trend was also highlighted by Business Day, which reported that a broad-based lift in activity helped reverse the mid-year slump.
Economists say easing inflation, a recent interest rate cut by the South African Reserve Bank and firmer global risk sentiment contributed to the shift. Channel Africa reported that executives are cautiously optimistic about the coming quarters, noting that stabilising economic conditions have supported improved planning and investment appetite.
Still, analysts warn that sustainable recovery will depend on whether rising confidence translates into stronger output and higher fixed investment. Business leaders told Business Day that persistent infrastructure constraints and electricity reliability remain key risks even as sentiment edges higher.
