/ 11 May 2005

Consumer confidence at record levels

South African consumer confidence has increased by almost 30% in a year according to the results of a survey released on Wednesday.

”Lower personal tax rate, low interest rate, stock market growth, employment growth and a booming property market have all added to the high level of consumer confidence,” said Eddie Grobler, general manager of MasterCard Southern Africa.

He was speaking in Johannesburg at the release of the results of the MasterIndex survey conducted by MasterCard in South Asia, the Middle East and Africa.

The SA index rose from 64,4 in February 2004 to 83,5 in February this year. A maximum possible score is 100.

The survey looks at consumers’ perception of economic conditions for the next six months.

Each of the indicators measured — the economy, employment, the stock market, regular income and quality of life — improved over the last year, Grobler said.

Out of the countries measured, South Africa was the fourth most optimistic.

Only consumers in Kuwait, Saudi Arabia and the United Arab Emirates — all oil-producing countries — are more positive than South Africans.

”With oil export prices at record highs, this is not surprising,” said Mike Schussler, chief economist at T-Sec.

Indian, Egyptian and Lebanese consumers are more pessimistic than South Africans. The survey targeted people with bank accounts aged between 18 and 64. – Sapa