S.African shopper confidence drops, however alerts sturdy festive season

(Reuters) – South Africa’s shopper confidence slipped one level within the fourth quarter, though retail gross sales throughout the festive season are nonetheless anticipated to be their finest ranges final seen in 2019, a survey confirmed on Wednesday.

The patron confidence index (CCI), sponsored by First Nationwide Financial institution (FNB) and compiled by the Bureau for Financial Analysis (BER), edged right down to minus 6 factors within the reported interval from minus 5 1 / 4 in the past.

A marked depreciation within the rand change price together with greater petrol costs and commerce uncertainties following the re-election of Donald Trump as U.S. president affected shopper confidence within the quarter.

Nonetheless, an increase in shopper spending because of decrease inflation and rate of interest cuts factors to a festive season as sturdy as pre-pandemic ranges.

“A string of favorable developments has seen shopper confidence using a lot greater for the reason that second quarter of 2024, together with the formation of a authorities of nationwide unity, the termination of load-shedding, a considerable deceleration in inflation, two rate of interest cuts and the implementation of the two-pot retirement system,” mentioned FNB Chief Economist Mamello Matikinca-Ngwenya.