South Africa consumer confidence slips in the second quarter

First National Bank Alaska

28/06/2021 09:00

June 28 (Reuters) - South Africa's consumer confidence
slipped further in the second quarter, a survey showed on
Monday, as the country's economic recovery slowed and people
held back on big-ticket purchases like vehicles and electronics.
    The consumer confidence index (CCI), sponsored by First
National Bank (FNB) and compiled by the Bureau for Economic
Research (BER), fell to minus 13 points from minus nine points
in the first quarter.
    "A string of negative developments in all likelihood knocked
the confidence levels of less affluent consumers, including
soaring food and fuel prices, the onset of a third wave of
COVID-19 infections ... and the feeble recovery in low-skilled
employment," FNB Chief Economist Mamello Matikinca-Ngwenya said.
    South Africa's economy expanded at a slower rate in the
first quarter of this year compared with the previous three
months. The economy deteriorated sharply last year after strict
COVID-19 lockdowns, and a slow vaccination campaign has also
hurt the country.
    The survey of about 500 respondents showed that while
low-income households were spending largely on essentials,
durable and semi-durable goods sales volumes were being
supported by pent-up demand from high- and middle-income
consumers.

 (Reporting by Pushkala Aripaka and Yadarisa Shabong in
Bengaluru)
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