FNB/BER consumer confidence index edges up

Consumer confidence in South Africa is showing signs of improvement, with the latest consumer confidence index survey revealing a slight uptick in sentiment despite remaining in negative territory. The survey, conducted between June 3rd and June 14th, indicates that while consumer sentiment is still pessimistic overall, there are some positive trends emerging. Lisette IJssel de Schepper, Chief Economist at BER, noted that the current consumer confidence reading is the highest in 18 months, with consumers feeling slightly more optimistic about their own financial positions. However, sentiments towards the economy and the timing to buy durable goods remain subdued. De Schepper highlighted that uncertainties surrounding the formation of the Government of National Unity may have impacted the survey results, but overall, the peaceful conduct of the recent elections has had a positive effect on sentiment. Despite challenges such as high borrowing costs and concerns over interest rate cuts, there are indications that the worst may be behind us. Factors like slowing food inflation, peaceful elections, and declining fuel prices are contributing to a more favorable outlook for consumer confidence. While challenges like the energy and water crises continue to weigh on consumer sentiment, the potential for interest rate cuts and improvements in economic reforms could help boost household expenditure and lead to a more positive economic environment. While consumer willingness to spend is improving, the ability to spend remains a concern for many South Africans.