Advertise with fastmoving.co.za
 
 

The consumer confidence index rose to 5 in the second quarter from 2 in the first quarter of 2019.
The consumer confidence index rose to 5 in the second quarter from 2 in the first quarter of 2019.

SA consumer confidence recovers, survey shows

ECONOMIC NEWS

EWN - May 29th, 11:23

Consumer confidence in South Africa recovered in the second quarter after a general election and the stabilization of the power grid, but consumer spending was likely to remain constrained, for now, a survey shows. 

The consumer confidence index, sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research, rose to 5 in the second quarter from 2 in the first quarter of 2019.

But household budgets were expected to remain constrained by higher personal income taxes, rising fuel and electricity prices and growing unemployment, FNB chief economist Mamello Matikinca-Ngwenya said.

“Consumers have been taking on more credit as financial pressures mount, but it is unlikely that the modest uptick in credit extension will be sufficient to underpin household consumption amidst dwindling real disposable income growth,” Matikinca-Ngwenya added.

The election boost to confidence, coupled with greater stability in the power grid, probably offset substantial increases in fuel prices, the survey indicated.

South African lawmakers elected Cyril Ramaphosa president last week, and he promised to create jobs and work for the interests of all citizens.

The country has been plagued by frequent power cuts and a 19% increase in petrol prices from the end of February to the beginning of May.

Consumer confidence dipped in the first quarter, suggesting that most consumers are neither optimistic nor pessimistic about the outlook for the country’s economy, the survey showed last month.EWN 

Related News

SA economy at risk of third-quarter contraction
11/10/2019 - 09:54
Dismal mining and manufacturing figures for August have raised the prospect of a third-quarter economic contraction.

SA's economy enters 70th month of downward cycle
09/10/2019 - 15:50
South Africa’s economy remains stuck in its longest downward cycle since 1945, adding to pressure on the government to implement reforms to lift business confidence and boost growth.

Stats SA’s seasonal adjustment models are part of regular rebasing
08/10/2019 - 10:53
Every year, SA’s economic activity peaks in the fourth quarter (October-December). On the production (or industry) side of GDP, this pattern is driven mainly by three industries: manufacturing; trade, catering and accommodation; and transport, storage, and communication.

Big business urges reforms to help SA economy
02/10/2019 - 13:17
Big business has called on President Cyril Ramaphosa to act urgently and implement short- and medium-term reforms and prioritise growth-enhancing policies to kickstart the economy.

Trade balance swings into surplus in August
01/10/2019 - 10:13
SA’s trade balance swung into a larger-than-expected surplus of R6.84bn in August, according to data from the SA Revenue Service.