South Africa’s civil confidence index dips as business sentiment grows pessimistic

Photo: Michele Spatari/AFP

FNB South Africa senior economist Siphamandla  Mkhwanazi has reported that the FNB/BER Civil Confidence Index dropped to 41 in Q2 2025, down from 45 in Q1, marking its third consecutive quarterly decline.  Mkhwanazi said that nearly 60% of respondents are now dissatisfied with current business conditions, expressing concerns particularly about low demand, delayed project tenders, and a lack of large-scale infrastructure initiatives.

Despite improved construction activity and profitability during the quarter, the outlook remains subdued. Mkhwanazi told Engineering News that order books are weakening and future work expectations are pessimistic, with many citing insufficient published tenders and adjudication delays as key constraints.

Siphamandla  Mkhwanazi, FNB South Africa, Photo: Moneyweb

Although sector performance showed modest improvement, broader confidence has faltered, particularly in the building sector, where the FNB/BER Building Confidence Index also fell to 36, with main contractor sentiment reaching its lowest level since Q3 2022