JOHANNESBURG - Consumer Confidence has plunged to levels last seen during the peak of the COVID-19 pandemic.
The latest FNB/BER Consumer Confidence Index shows that the big drop mirrors the substantial deterioration in retailer sentiment during the first quarter.
Retailer confidence contracted to 34 from 42 index points, the weakest level since the second quarter of 2020.
The about-turn in consumer confidence has been characterised by a sharp drop in consumer’s willingness to spend in the current climate.
The index also shows that high-income confidence declined the most in the quarter.
FNB chief economist Mamello Matikinca- Ngwenya says the trend is doubly alarming for the outlook for household expenditure, as affluent consumers also have the greatest spending power.
She says that unless there is a recovery in the economy, the trend is likely to continue.
"So an improvement in consumer confidence will be a function of how the economy performs, it will be a function of how the labour market performs and also the squeeze that consumers are experiencing from just a cost of living point of view," she said.
Consumer Confidence has plunged to levels last seen during the peak of the COVID-19 pandemic. The latest FNB/BER Consumer Confidence Index shows that the big drop mirrors the substantial deterioration in retailer sentiment during the first quarter. #DStv403 pic.twitter.com/PfMdvXLej2
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