Worst news in 7 months for businesses in South Africa

• South African manufacturer sentiment has slumped to the lowest level in seven months due to concerns over the impact of the Middle East conflict on demand.
• The conflict has led to wild swings in the oil price, with the current price trading above $84 a barrel, and has also constrained traffic through the Strait of Hormuz, a key trade artery.
• The decline in sentiment suggests that manufacturers remain cautious about the durability of the recent improvement in activity, and may face renewed pressure on costs due to an increase in diesel prices later this week.