Business confidence in South Africa edged lower in September, weighed down by uncertainty over international energy prices. Despite the decline, the index remains above its level from the same period in 2025, according to a survey released on Monday, 19 October.

According to Reuters, the Business Confidence Index of the South African Chamber of Commerce and Industry (SACCI) fell from 135.1 points in August to 134.3 points in September.

The institution, which publishes the indicator every two months, highlighted rising energy costs as one of the primary concerns among businesses, citing the impact on operating expenses and profitability.

Nevertheless, the index stands 10.9 points above the level recorded in September 2025, supported by an increase in foreign tourist arrivals, vehicle sales, and the appreciation of precious metals.

The development contrasts with an improvement recorded in the manufacturing sector. In early October, a survey on the Absa Purchasing Managers' Index (PMI) revealed a recovery in sector activity in September, following three consecutive months of contraction.

The seasonally adjusted indicator rose from 45.8 points in August to 50.7 points in September, crossing the 50-point threshold that separates expansion from contraction for the first time since May. The recovery was driven primarily by an increase in new orders.