Third-quarter consumer confidence declined by three index points — from 20 during the second quarter — to 17, the FNB/BER consumer confidence index (CCI) showed on Wednesday.
”It seems most of our consumers are suffering from either too much experience and fearing what is coming, or too little. They are either unaware or closing their eyes to warning signs,” said First National Bank economist Cees Bruggemans.
He said it was surprising that the interest rate increases and consequent change in expectations did not cause a major decline in consumer confidence.
Bruggemans said some reasons include the small interest rate increases thus far, and that consumers have not felt the full impact of rate increases.
The decline could mainly be attributed to consumers becoming somewhat less optimistic about South Africa’s economic prospects, and less convinced about buying durable goods at present. — Sapa