JOHANNESBURG - South Africa's business confidence recovery has hit a speed bump.
After two consecutive quarters of improvement, the RMB/BER Business Confidence Index dropped eight points to 39 in the second quarter of 2026.
The culprit is the escalating war in the Middle East.
READ | Trump making final decision on proposed Iran deal
Rising oil prices have pushed up fuel costs, reignited inflation concerns, and dramatically changed the interest-rate outlook.
Businesses that were expecting rate cuts are now preparing for possible hikes.
READ | Reserve Bank warns of possible ‘food shock’ as repo rate increases
The biggest declines in confidence came from vehicle dealers, wholesalers and retailers, as consumers become more cautious with their spending.
There was one bright spot as manufacturing edged slightly higher.
But overall, businesses are taking a more cautious view of the months ahead.