SA consumer confidence rebounds in third quarter: Report

The latest report from the Bureau for Economic Research shows that Consumer Confidence rebounded to minus 13 in the third quarter from minus 19 in the second quarter.

The improvement, while in negative territory, is attributed to improved sentiment in the economic outlook and household finances.

FNB Senior Economist Sphamandla Mkhwanazi says amid higher oil price pressures, which are pushing up fuel costs, consumers are likely to be more cautious with their spending.

“Expectations for both household finances and the economy improved noticeably.

However, people are still reluctant to make big-ticket purchases.

In fact, sentiment around buying durable goods like cars, furniture and appliances fell to an 18-month low in the third quarter.

Confidence improved across all income groups, with low-income households seeing the strongest gains, probably helped by the very low food inflation we are currently witnessing.

Higher-income consumers remain the most cautious, largely due to higher fuel and borrowing costs.

The bottom line here is that consumers are feeling less pessimistic but definitely not optimistic.”