BUSINESS DAY SPOTLIGHT
PODCAST | Slow economy to keep consumer finances fragile, Momentum-Unisa index shows
Host Mudiwa Gavaza is joined by Johann Van Tonder, economist and researcher at Momentum
Consumer vulnerability is the focus of this edition of the Business Day Spotlight.
Our host Mudiwa Gavaza is joined by Johann Van Tonder, economist and researcher at Momentum.
Momentum-Unisa’s consumer financial vulnerability index (CFVI), which registered 50.9 points in the third quarter, highlighted a marginally better state of consumer finances.
The CFVI, as measured from the views of researchers, bankers, insurers, retailers and analysts who deal with consumers daily, increased from 49.3 points the second quarter and 49.7 points a year ago.
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Van Tonder says the reading deemed consumers to be less financially vulnerable in the quarter, but admits people are still in despair.
He explains that a good reading for the index is a score of 60 points and above, with a great reading being from 80 points.
The report found structural challenges such as political instability and corruption; unemployment, poverty, and inequality; and load-shedding as key risks to building on the improvement in the state of consumer finances which occurred in the third quarter of 2023.
Van Tonder outlines the state of consumer vulnerability according to Momentum-Unisa’s index; how the index is constituted; issues affecting the economy; and an outlook for 2024.
Business Day Spotlight is a TimesLIVE Production.
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