S.Africa consumer confidence improves in third quarter after vaccine rollouts

First National Bank Alaska

06/09/2021 09:00

Sept 6 (Reuters) - South Africa's consumer confidence
improved slightly in the third quarter from the three months
prior, a survey showed on Monday, helped by pent-up demand for
big-ticket purchases such as cars and electronic appliances
after vaccination drives.
    The consumer confidence index (CCI), sponsored by First
National Bank (FNB) and compiled by the Bureau for Economic
Research (BER), rose to minus 10 points from minus 13 in the
second quarter.
    "The fact that consumer sentiment did not deteriorate
further on the back of the violent protests and rampant looting
that tore through KwaZulu-Natal and Gauteng during July points
to a level of resilience among consumers," according to the
survey. 
    Riots broke out in July, leading to damages of hundreds of
businesses, after former President Jacob Zuma handed himself in
to start a 15-month jail term for contempt of court. 
    The civil unrest that engulfed parts of the country "would
undoubtedly have knocked both business and consumer confidence
during July," the survey said.
    The rollout of COVID-19 vaccines bolstered confidence
levels, the survey suggested, with government support for its
employees and an uptick in dividend payments also countering the
impact of the civil unrest.
    The confidence levels of high-income, middle-income and
low-income households were at broadly similar levels during the
quarter, the survey of about 500 respondents showed. 

 (Reporting by Yadarisa Shabong in Bengaluru; Editing by
Ramakrishnan M.)
 ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa;
 +919742735150;))