SA consumer confidence rebounds in third quarter: Report
The improvement is attributed to improved sentiment in the economic outlook.
According to a report from the Bureau for Economic Research, South African consumer confidence rebounded in the third quarter, moving from minus 19 in the previous quarter to minus 13. This improvement, while still in negative territory, is due to better sentiment regarding the economy and household finances. FNB Senior Economist Sphamandla Mkhwanazi notes that higher oil prices, which increase fuel costs, may make consumers more cautious with their spending.
Despite this, expectations for both household finances and the economy improved noticeably. However, people are still hesitant to make significant purchases, with confidence in buying durable goods such as cars, furniture, and appliances falling to an 18-month low in the third quarter. Confidence across all income groups increased, with low-income households experiencing the most significant gains, likely due to the low food inflation in the country.
Higher-income consumers, on the other hand, remain cautious, primarily due to increased fuel and borrowing costs. In summary, while consumers are feeling less pessimistic, they are not yet optimistic.
Written by urgent.news from SABC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
