South African Consumer Confidence Recovers Slightly in Q2

South African Consumer Confidence Recovers Slightly in Q2

30 May 2019 – Consumer confidence in South Africa recovered sightly in the second quarter of 2019, though consumer spending was likely to remain constrained in the near term, a survey suggested.

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, sharp fuel and electricity price hikes and rising unemployment rates, 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. (Reporting by Justin George Varghese in Bengaluru Editing by Andrew Heavens) Source (Reuters) https://bit.ly/2Wb1D3T