PODCAST | Consumer confidence plummets to three-decade low

Consumer sentiment is at an almost 30-year low in SA. This is the focus of this edition of the Business Day Spotlight. 

Our host Mudiwa Gavaza is joined by Mamello Matikinca-Ngwenya, FNB’s chief economist, to discuss the results of the consumer confidence index (CCI), compiled in collaboration with the Bureau for Economic Research.

Last week it was reported that consumer sentiment in SA had dropped to its lowest level in more than three decades during the second quarter of 2022 as a result of a major deterioration in the country’s economic outlook.

Listen in here: 

Having already slipped from -9 to -13 index points during the first quarter of 2022, the FNB/BER consumer confidence index plunged to -25 in the second quarter of 2022.

Matikinca-Ngwenya explains how the CCI, which gauges the mood of SA consumers, is determined. 

She explains that the slump can be ascribed to a marked rise in living costs - driven by the fuel price, declines in the economic outlook and households’ financial position, among a host of factors. 

Topics of discussion include: how the CCI is determined, results and findings of the latest study, the impact of inflation on consumer confidence, pressures on different income groups in SA, ways in which government and private sector players can help ease the pressure on consumers, and an outlook for the rest of the year. 

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Business Day Spotlight is a MultimediaLIVE production.