Consumer confidence drops, but signals strong festive season

South Africa's consumer confidence slipped one point in the fourth quarter, although retail sales during the festive season are still expected to be their best levels last seen in 2019, a survey showed on Wednesday, 4 December 2024.

5 Dec 2024

Source: Reuters/Siphiwe Sibeko

The consumer confidence index (CCI), sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research (BER), edged down to minus six points in the reported period from minus five a quarter ago.

A marked depreciation in the rand exchange rate along with higher petrol prices and trade uncertainties following the re-election of Donald Trump as US president affected consumer confidence in the quarter.

Still, a rise in consumer spending due to lower inflation and interest rate cuts points to a festive season as strong as pre-pandemic levels.

"A string of favorable developments has seen consumer confidence riding much higher since the second quarter of 2024, including the formation of a government of national unity, the termination of load-shedding, a substantial deceleration in inflation, two interest rate cuts and the implementation of the two-pot retirement system," said FNB chief economist, Mamello Matikinca-Ngwenya.

Source: Reuters

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