Johannesburg
- Consumer confidence revived in the third quarter, but remains in negative territory.
This is according
to a survey released on Thursday, which also indicated that households remain
concerned about the outlook for the economy.
The index,
sponsored by First National Bank but compiled by the Bureau for Economic
Research, recovered to negative 3 in the third quarter after registering negative
11 in the second quarter.
In a note,
Investec explains this is below the long-term average reading of positive
4.
The improvement in the consumer confidence index (CCI)
in the third quarter stemmed predominantly from forward looking indicators,
says Investec.
“Specifically, there was less pessimism concerning the
economic prospects over the next 12 months and increased confidence with
respect to the household financial position during the next 12 months.”
Most of this improvement was, however, derived from
more confident low middle and low income households. Confidence amongst high
and high middle income households remained depressed, says the bank.
Read also: Business confidence is on the rise again
“In contrast to the forward looking
indicators, the present time indicator deteriorated further with the majority
of consumer rating the present time as inappropriate to purchase durable goods.
High income households turned more pessimistic than lower income households.”
These indicators, says the bank,
suggests that retail activity will remain suppressed over the festive season,
as consumers' ability to spend remains under considerable
pressure.
BUSINESS
REPORT