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<\/a>Widescale improvement <\/strong><\/p>\n\n\n\n Although sentiment remains low across several of the BER’s surveys, there has been a general tick-up due to an improvement in the underlying economic conditions following a disappointing end to 2022. <\/p>\n\n\n\n For instance, FNB\/BER Consumer Confidence Index (CCI)<\/a> grew from -25 in Q2 2023 to -16 in Q3.<\/p>\n\n\n\n High-income households \u2013 those with earnings of more than R20,000 \u2013 also saw their confidence levels grow passively from -40 in Q2 2023 to -17 in Q3, with consumers heartened by a decline in load shedding, further investment in alternative power and diminished tensions with the West. <\/p>\n\n\n\n Despite the majority of respondents remaining dissatisfied with prevailing business conditions, the FNB\/BER Building Confidence Index<\/a> did at least grow from 28 points in Q2 2023 to 34 in Q3 2023. <\/p>\n\n\n\n “The non-residential property market remains weak, characterised by, among other things, still high national office vacancy rates and constraints on the manufacturing and retail sectors, which drive demand for industrial and shopping space,\u201d Mkhwanazi said. <\/p>\n\n\n\n \u201cDespite this, new building activity is robust, and order books are looking more promising. Several factors, including possible ongoing retrofitting of office space post-COVID and to deal with the energy crisis, semigration of firms to the Western Cape, and low technical base effects are contributing to this resurgence in non-residential building activity.\u201d<\/p>\n\n\n\n Furthermore, the RMB\/BER Business Confidence Index (BCI) grew from 27 in Q2 to 33 in Q3. <\/p>\n\n\n\n “The challenges posed by relatively high interest rates, the resultant strain on consumers, and social unrest meant that business activity remained constrained,” RMB said. <\/p>\n\n\n\n “Encouragingly, the slight reprieve in the incidence of load-shedding provided support to some firms, especially in manufacturing.”<\/p>\n\n\n\n This could be seen in the Absa Manufacturing Survey, which increased by 6 points to 23 on the\u00a0back of better business conditions, supported by an improvement in energy supply. <\/p>\n\n\n\n The Others Services Survey<\/a> may still have been below its long-term average of 52, but it did at least improve from 43 points in Q2 to 48 points in Q3. <\/p>\n\n\n\n The hospitality subsector had the highest confidence of any of subsector, climbing from 52 points to 67 points, with restaurants benefitting from the effects of load shedding on home cooking. <\/p>\n\n\n\n The BER’s Retail Trade Survey also saw an improvement from 20% in Q2 to 32% in Q3<\/p>\n\n\n\n \u201cAlthough load-shedding remains a harsh reality, inflation has moved to within the target band so far in quarter three,\u201d the BER said.<\/p>\n\n\n\n \u201cFor the first time since November 2021, the SARB did not hike the policy rate at its July meeting. These factors likely contribute to the improvement we see in retail confidence.\u201d<\/p>\n\n\n\n