Cape Town | Wednesday
SOUTH Africans of all backgrounds are likely to be feeling the pinch resulting from the increased cost of living.
Research Surveys investigated the effect the increased cost of living was having on the lives of metropolitan South Africans and their consumer spending habits. It found that few people disagreed they would have to make cutbacks in their spending.
The survey was conducted from February 7 to 13.
In total, 2 000 respondents were interviewed on a face-to-face basis in their homes. Respondents of both genders, divided by the survey into four racial classifications, took part in the interviews which were conducted in the seven major metropolitan areas of South Africa.
”Those most likely to be affected by the financial squeeze are working adults, people in lower income groups, and those with children in their homes,” Research Surveys said.
Clothing retailers may weather tough times in the near future with 43% of adults claiming they would spend less in this area.
The only group who did not rank clothing highest on their list of cutbacks were white adults who were more likely to cut expenditure on entertainment eating out at restaurants, 50%, and going to the movies, 38%.
Going to the movies was also high on the list of activities to curb with 35% of all respondents mentioning it. Younger adults were most likely to cut down in this area.
Twenty-six percent of respondents said they would have to cut down on credit or hire purchase spending.
”Even necessities such as groceries and electricity are likely to feel the effect of reduced consumer spending,” Research Surveys said.
One in five people said they would have to lower their grocery bill while 15% planned to reduce their electricity consumption.
Luxuries such as DStv, M-Net, Internet subscriptions and cellphone expenses would also fall victim to cost cutting, predominantly by white South Africans. – Sapa