https://en.sputniknews.africa/20240917/south-africas-consumer-confidence-index-improves-to-pre-pandemic-levels-report-says-1068310470.html
South Africa's Consumer Confidence Index Improves to Pre-Pandemic Levels, Report Says
South Africa's Consumer Confidence Index Improves to Pre-Pandemic Levels, Report Says
Sputnik Africa
The Consumer Confidence Index (CCI) is a standardized confidence indicator that provides an indication of the future direction of household consumption and... 17.09.2024, Sputnik Africa
2024-09-17T15:19+0200
2024-09-17T15:19+0200
2024-09-17T16:45+0200
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South Africa's CCI is now at its best level since 2019, following a further recovery in the third quarter of this year, according to today's CCI report from the Bureau for Economic Research, one of South Africa's oldest economic research institutes. The index has improved from minus ten points in the previous quarter to minus five in the current quarter, the report shows.According to the head of the FNB, the central bank's interest rate is one of the positive factors for confidence. Economists expect a 25 basis point cut as inflation slows. The decision is expected to be announced on Thursday. In addition to the slowdown in inflation, the formation of the government of national unity, the absence of load-shedding, a stronger local currency, and a significant drop in fuel prices have also contributed to improving consumer confidence.Moreover, the introduction of a new two-pillar pension system allows consumers to use part of their retirement savings, which is undoubtedly beneficial for households experiencing financial difficulties.However, the impact of the two-pot policy and potential rate cuts is minimized for low-income households, as the lack of pension funds and debt is tied to the base rate, thus reducing confidence in this category.
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south africa, southern africa, economy, inflation, interest, international, finance
south africa, southern africa, economy, inflation, interest, international, finance
South Africa's Consumer Confidence Index Improves to Pre-Pandemic Levels, Report Says
15:19 17.09.2024 (Updated: 16:45 17.09.2024) Alla Shukanova
Writer / Editor
The Consumer Confidence Index (CCI) is a standardized confidence indicator that provides an indication of the future direction of household consumption and saving. The index is based on responses to questions about households' expected financial situation, their views on the general economic situation, unemployment, and their ability to save.
South Africa's CCI is now at its best level since 2019, following a further recovery in the third quarter of this year, according to today's CCI report from the Bureau for Economic Research, one of South Africa's oldest economic research institutes. The index
has improved from minus ten points in the previous quarter to minus five in the current quarter, the report shows.
"A confluence of positive developments has bolstered the confidence levels of South Africa's more affluent consumers over the last six months," said Mamello Matikinca-Ngwenya, Chief Economist of the First National Bank (FNB), which sponsored the research.
According to the head of the FNB, the central bank's interest rate is one of the positive factors for confidence. Economists expect a 25 basis point cut as inflation slows. The decision is expected to be announced on Thursday. In addition to the slowdown in inflation, the formation of the government of national unity, the absence of load-shedding, a stronger local currency, and a significant drop in fuel prices
have also contributed to improving consumer confidence.
Moreover, the introduction of a new two-pillar pension system allows consumers to use part of their retirement savings, which is undoubtedly beneficial for households experiencing financial difficulties.
However, the impact of the two-pot policy and potential rate cuts is minimized for low-income households, as the lack of pension funds and debt is tied to the base rate, thus reducing confidence in this category.
