Altron index | Higher interest rates squeeze household finances

JOHANNESBURG - Higher interest rates continue to squeeze the finances of most households.

That's according to the results of the latest  Altron FinTech Household Resilience Index.

While more people are finding employment, salaries increase below inflation and consumer debt is on the rise.

READ: CPI increase fuels fears of interest rate hike

Households are under severe strain and the index shows that this will have a ripple effect on retailers.

Consumers are unlikely to spend as they traditionally would on Black Friday ahead of the festive season.  

In the second quarter of 2023, the index recorded a value of 109, a marginal increase compared to the level of 108.6 during the first quarter of the year.

READ: Consumers turn to credit amid high interest rates

Since 2014, the average annual improvement in the index has been less than 1 percent.

This is a indication of low investor and business confidence.  

Dr Roelof Botha, economist and compiler of the index, says household debt is reaching unsustainable levels.