DURABLE GOODS CONSUMPTION
Low consumer confidence set to hurt retailers
The ’significant’ drop in consumers’ durable goods consumption will continue to hurt retailers, say economists
Consumer confidence dropped in the fourth quarter of 2016, signalling bad news for durable goods retailers, economists warned on Thursday. Economists keep a close watch on consumers’ durable goods consumption as a key gauge of how business is doing. Durable goods retailers, such as equipment, vehicle, furniture and mainstream retailers, experienced a growth slump throughout most of 2016. First National Bank (FNB) household and property sector strategist John Loos said the -3.7% year-on-year contraction documented for durable goods in the three months to November was "significant". Consumer confidence fell seven index points to -10 in the fourth quarter, according to the FNB-sponsored consumer confidence index, compiled by the Bureau for Economic Research, which was published on Thursday.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.