SA consumers upbeat about their finances, report finds

JOHANNESBURG - South African consumers appear a little more upbeat about their finances after the consumer confidence index (CCI) again showed signs of recovery in the second quarter.

This is the latest data to come from a survey by bank FNB and the Bureau for Economic Research on Thursday.

The CCI improved to (-12) in quarter two from negative (-15) in the first quarter.

The latest reading is the highest it’s been in a year and a half, and points to a gradual improvement in consumer spending compared to the very weak performance recorded over the last year.

While the second quarter CCI was better, it remains far below the long-term average reading of zero.

The FNB/ Bureau for Economic Research report believes the uncertainty about the configuration of the Government of National Unity and high interest rates are partially to blame.

But on the positive side, FNB chief economist Mamello Matikinca-Ngwenya said a lack of load shedding in the second quarter, substantial cuts in fuel prices in June, a deceleration in food inflation and a R20 increase in the COVID grant all helped to mend consumer confidence.

She said this could also help boost household consumption in the coming months.