South African business confidence down for the third consecutive quarter, according to a survey

(Reuters) – South African business confidence has fallen for the third consecutive quarter, a survey said on Tuesday as the country struggles to grow in a recessionary economy.

The business confidence index of the Rand Merchant Bank (RMB) established by the Bureau of Economic Studies fell to 34 points in the fourth quarter, against 34 points in the third quarter, still falling below the 50 mark that separated net positive and negative readings.

The index lost six points in the third quarter and four in the second quarter.

"While President (Cyril) Ramaphosa is increasingly interested in public-private partnerships, the reality is that a multitude of political problems continue to weigh on trust," said Ettienne Le Roux, Chief Economist. of the RMB.

South Africa's central bank increased its reference benchmark rate for the first time in almost three years this month, pointing out that the risk of higher long-term inflation remained high and could not be risked. to wait later to act.

The government has forecast larger budget deficits and reduced growth forecasts in a dark October budget that aimed to focus spending on infrastructure, manufacturing and agriculture in order to revive the economy. .

Inflation reached 5.1% in October, which is in line with a Reuters poll, with food prices declining slightly as the effect of rising world oil prices was moderate.