S. Africa Consumer Confidence Weakens In Q3

(RTTNews) - Consumer confidence in South Africa deteriorated in the third quarter following a recovery in the previous three months, survey data from the Bureau for Economic Research showed on Thursday.

The FNB/BER consumer confidence index dropped to -13 from -10 in the second quarter, results of the quarterly survey revealed. In the first quarter, the measure had plunged to -20.

The index thus moved further below the relatively positive levels observed during the second half of 2024, the think tank, which is part of the Stellenbosch University, said.

The survey, which is carried out among adults living in predominantly urban areas in South Africa, poses three questions to respondents - the expected performance of the economy, the expected financial position of households and the rating of the appropriateness of the present time to buy durable goods, such as furniture, appliances and electronic equipment.

Last week, the South African Reserve Bank left its key interest rate unchanged at 7 percent as policymakers decided to adopt a wait-and-watch stance following a year-long easing and they also assessed that inflation is set to rise in the coming months due to higher prices for electricity, food and services, while economic growth is set to strengthen.

The SARB raised the GDP growth forecast for this year to 1.2 percent from 0.9 percent, despite a weaker export outlook due to higher tariffs. The central bank projected inflation to average 3.4 percent this year, 3.6 percent next year and then return to 3.0 percent during 2027.