IBR : Q1 2024

Exploring the nation's mid-market optimism

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Optimism among South African mid-market businesses is once again under pressure, declining from 53% in H2 2023 to 48% in Q1 2024.

Furthermore, this is significantly lower than global optimism levels of 66% in Q1 2024. This may be an indication of a more cautious outlook of the mid-market in South Africa due to various factors such as domestic economic conditions, political uncertainties, potential impact from volatility in the Middle East and specific challenges faced by mid-market businesses in the South African context, such as labour costs and regulatory hurdles.

The challenges of navigating the global economy have been highlighted by a record number of mid-market business leaders expecting an increase in profitability (up seven points to 90%) coinciding with a drop in optimism (down five points to 48%), according to the latest report 

The record number of businesses expecting an increase in profitability is most likely due to inflation being brought under control. This is highlighted by an eleven-point drop (down to 60%) in the number of businesses expecting to increase their selling prices over the next 12 months.

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