JOHANNESBURG - Ratings agency Moody’s says the steep decline in the country’s business confidence is a setback to economic recovery.
Moody’s warns poor business confidence implies reduced investment, which will negatively affect growth in an already weak economy.
This will also make fiscal consolidation more challenging for the country.
South African business confidence fell in the second quarter, to a level not seen since the 2009 recession.
Moody's lowered South Africa's rating to the bottom of the investment grade table, with a negative outlook, earlier this month.
S&P Global Ratings and Fitch currently have South Africa at junk level.