Consumer confidence improved by eight points in the third quarter. The improvement is mainly due to the expectation that the economy and personal finances will improve over the coming year. But respondents still don't feel that it's a good time to buy durable goods, and their view is reflected in the persistent decline in sales of new vehicles and other durable goods. Despite economic growth of only 0.2% in the third quarter, there were good reasons for the improvement in confidence. During the survey period, the dollar was at R13.50 and consumers had the benefit of a 117c/l fuel-price decrease. Not only that, but inflation was receding, and interest rates remained steady. However, these metrics have deteriorated. The rand has had a bumpy ride on political noise. Also, a production cut by Opec members has seen oil prices rise above $50 a barrel. Another important boost to the consumer confidence index was the outcome of the local-government elections. Digging into the details is tel...
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