Advertise with

Consumer confidence slides deeper into negative territory.
Consumer confidence slides deeper into negative territory.

Consumer confidence slides deeper into negative territory


By Robert Laing - Jul 12th 2017, 11:52

South African consumer confidence worsened to -9 in the second quarter of 2017 from -5 in the first quarter, a First National Bank (FNB) sponsored survey done by Stellenbosch University’s Bureau for Economic Research (BER) found. 

Results for both the first and second quarter were released on Wednesday morning. The first quarter results were delayed by a switch in market research firms, the BER said.

Consumer confidence has been negative for three years, its longest pessimistic streak since the index was launched in 1982.

The BER attributed the index perking up to -5 from negative -10 in the fourth quarter of 2016 on the hope of better agriculture production in the summer rainfall areas, a moderation in inflation and tentative signs of an economic upturn taking hold in advanced economies.

These hopes were dashed in the second quarter due "to the confidence shock in the wake of the sovereign credit downgrades following the Cabinet reshuffle at the end of March, and news that the South African economy has entered a recession", the BER said.

"Despite the recent deceleration in food inflation, food prices remain very high and will continue to dampen the real purchasing power of consumers, especially for low-income households," FNB economist Jason Muscat said.

"Extraordinarily weak business confidence levels — currently at the lowest level since 2009 -— will keep a firm lid on household credit extension in coming months. Bar a swift, confidence-inspiring change to SA’s current political landscape, consumer spending is likely to remain depressed during the remainder of 2017."

© BusinessLIVE MMXVII 

Read more about: sa economy | consumer confidence | ber

Related News

Ackermans shares its secrets to sustainability
23/02/2018 - 15:04
Local retailers have been under severe pressure these past couple of years, and 2018 promises no respite.

SA food and non-alcoholic price inflation decelerates
22/02/2018 - 15:00
Food and non-alcoholic beverages inflation has been on a downward trend since mid-2017, following a robust output from the agricultural sector. In January 2018, food inflation further decelerated to 4.5% year-on-year (y/y), which is the lowest level in more than two years. With that said, the food basket remains mixed.

Ramaphosa's 10-point plan to revive SA's economy
21/02/2018 - 09:02
President Cyril Ramaphosa unveiled the recovery plan to set South Africa on a new growth path, which involves forming a social pact with different social partners.

How Small Businesses are gearing up to survive the drought
15/02/2018 - 16:43
Nationally small businesses are now being advised to prepare for future water scarcity. With small to medium sized businesses contributing over 65% of South Africa’s employment and 50% of the country’s GDP, their survival is essential to the economy.

SA's bulk exports rise almost 90% to record in January
13/02/2018 - 08:37
SA’s bulk export volumes shot up 88.8% year on year in January 2018 to a record 25.4-million tonnes, data from the Transnet National Ports Authority (TNPA) showed on Monday.