JOHANNESBURG - The latest RMB survey shows that South African business confidence fell deeper into negative territory in the second quarter, to a level not seen since the 2009 recession.
That's according to the Bureau for Economic Research which released its latest Business Confidence Index earlier on Wednesday.
The index compiled fell to 29 points in the second quarter - that's down from 40 points in the first quarter.
The country slipped in a technical recession for the first time in eight years in the first quarter, hit by weakness in consumer sectors such as wholesale, retail and accommodation.
The institution surveys confidence across the manufacturing and building sector as well as the retail, wholesale and motor trade industries.
The second quarter data by the bureau indicates future economic growth is expected to remain subdued.
Although the business confidence index was under the 50 mark level for some time, Wednesday's data shows a massive drop of 11 index points to come in at 29.
The bureau says the sharp decline is not only due to the Cabinet reshuffle and the ensuing credit ratings downgrades but also persistently weak business activity.
The report further states businesses are also no longer as upbeat as they once were about conditions improving in the future.