The business climate suddenly cooled in the 2nd quarter, indicates Iédom mid-September in the latest edition of its economic trends. The business climate indicator falls by 13,4 points at 101,5, confirming the slowdown in the Reunion economy, at work since the second half of 2022. Business leaders note that commercial activity is stagnating, that cash flow deteriorates and order books decrease. They also appear pessimistic regarding the months to come, given the decline in their investment prospects. This situation coincides with the weakening of household consumption, upset by inflation. Spending by Reunionese households using bank cards fell significantly in the 2nd half of the year. Their cumulative amount fell by 4,6% compared to the same period the previous year. This decline only reached 2,7% over the first three months of the year. Sales of new passenger vehicles are also down (-5,6% after seasonal adjustment), just like imports of goods intended for households.
