South Africa’s consumer confidence declined slightly in the fourth quarter, dropping by one point, yet festive season retail sales are anticipated to reach their highest levels since 2019, according to a survey released on Wednesday.
The Consumer Confidence Index (CCI), compiled by the Bureau for Economic Research (BER) and sponsored by First National Bank (FNB), fell to -6 points from -5 in the previous quarter.
The dip was influenced by factors such as the sharp depreciation of the rand, rising petrol prices, and global trade uncertainties following Donald Trump’s re-election as U.S. president.
Despite this decline, lower inflation and recent interest rate cuts are expected to boost consumer spending, signalling a holiday season comparable to pre-pandemic levels.
“Several positive developments have significantly bolstered consumer confidence since the second quarter of 2024,” said Mamello Matikinca-Ngwenya, Chief Economist at FNB. “These include the establishment of a government of national unity, the end of load-shedding, a notable slowdown in inflation, two interest rate cuts, and the rollout of the two-pot retirement system.”
Reuters/Patience Ameh
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