Latest data show SA consumer confidence at very depressed levels

Data from the FNB/Bureau for Economic Research (BER) Consumer Confidence Index (CCI), released on Monday (28 June), showed that the FNB/BER CCI backtracked to -13 in 2Q21, after recovering from -12 (in 4Q20) to -9 index points during 1Q21. This latest reading remains well below the average CCI reading (of +2 since 1994), thus indicating very depressed consumer confidence levels, albeit less negative compared to the extraordinarily pessimistic readings of -33 and -23 recorded during 2Q20 and 3Q20, respectively.

Figure 1: The FNB/BER Consumer Confidence Index

Source: FNB/BER, Anchor

A breakdown of the CCI per household income group shows profoundly diverging results for the various income groups in South Africa (SA), and reiterates that it is the low-income groups that continue to feel the most strain. From an income group perspective, the decline in the overall CCI can largely be attributed to a major deterioration in the confidence levels of low-income households (earning less than R2,500/month), with the low-income confidence index plunging from zero to -22 index points during 2Q21. Essentially, low-income households now have little faith about their income prospects – they no longer expect their household finances to improve over the next year.

In contrast, high- and particularly middle-income confidence levels saw far smaller declines during 2Q21, and affluent consumers are now much less pessimistic compared to low-income households. Most high-income consumers expect the financial position of their households to be unchanged over the next 12 months.

Figure 2: Consumer confidence by income group

Source: FNB/BER

OUR LATEST NEWS AND RESEARCH

INVESTING IN YOUR NEEDS

Submit your details and we’ll give you a call back to assist and advise you on your investment.

SUBSCRIBE TO OUR NEWSLETTERS

Subscribe to our newsletters to receive regular market commentary, research and updates from the Anchor team. Select between our Individual or Financial Advisor newsletters by selecting the relevant tab below.

Insights and commentary to help you navigate markets.

Subscribe to Anchor's daily Current Co-ordinates newsletter.

Newsletter popup