South Africa's business confidence fell sharply to a seven-year low in the first quarter of 2008, as the sector fretted about an uncertain economic and political outlook, a survey released on Wednesday found.
The Business Confidence Index, sponsored by Rand Merchant (RMB) and the Bureau for Economic Research (BER), fell by 19 index points to 48.
"The sharp fall in business confidence ... reflects a deepening slowdown in business volumes, profitability coming under pressure, as well as increased economic and political certainty," the sponsors said in a statement.
The survey found that interest rates, tighter credit lending rules, an electricity shortage and higher inflation all affected business volumes.
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