In Q1 2025, confidence declined across all sectors, with some experiencing sharper drops than others. The most significant declines, ranging between 16% and 23%, were driven by concerns over economic conditions, reduced expectations for industry growth, and challenges in securing debt or equity capital. Sentiment around investment levels also weakened, contributing to the overall downturn. While some sectors saw more modest declines, the trend reflects a broader sense of caution and uncertainty in the market.

Financials faced the most significant decline, with a 23% drop in confidence. This overall decrease was influenced by economic conditions, expectations for industry growth, and the ability to secure debt or equity capital. Issues such as inefficient and wasteful expenditure, corruption, and fraud have exacerbated the economic climate, leading to a lack of confidence in the industry’s ability to grow and thrive.

Consumer Staples experienced a decline of 16%, resulting in a score of 57.11. This drop was mainly caused by a 27% reduction in confidence regarding economic conditions and a 19% decrease in their capacity to obtain debt or equity capital.

Information Technology saw a decline in confidence, resulting in a score of 51.90 points, which reflects a 16% decrease.

Health Care experienced a modest decline to 50 points, marking a 6% drop.

Materials also noted a decrease in confidence, falling by 16%. This decline was largely attributed to a 35% drop in confidence concerning economic conditions and a 17% decrease related to their intended investment levels.

Consumer Discretionary recorded the third-largest decline in confidence, dropping by 20%, to a score of 49.17. The decrease in sentiment was primarily driven by a 37% reduction concerning economic conditions.

Real Estate saw an 18% drop in confidence, bringing the score down to 55 points. This decline was mainly influenced by a 36% reduction in confidence regarding their ability to secure debt or equity capital.

Industrials recorded the second-largest decrease in confidence, dropping 16%, resulting in a score of 50.78 points.