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<\/a><\/p>\nData from Absa’s Merchant Spend Analytics up to March 2022 tells a story of a consumer that was holding firm, with increased spending in categories across the board since lockdowns eased, the consumer expert said.<\/p>\n
“However, we recognise the gap in the data is the cash trading in the system, and that cash is more difficult to track, bearing in mind that South Africa has a large cash economy.<\/p>\n
“In our Absa Cash Collection business, we have however identified a similar trend to that witnessed in the mobility data, showing a decline in cash volumes processed, giving rise to a potential warning sign pertaining to the consumer\u2019s financial health.<\/p>\n
And, during the month of April Absa picked up on negative growth in its merchant spending data in some categories including groceries, “raising a further flag to our concern,” said Cordier.<\/p>\n
“The data, although still very limited, could suggest that economic pressure on consumers is mounting<\/strong>. Further pressure in terms of the fuel price hikes and the cost pressure building in the supply chains as a result, certainly paints a bleak picture on consumer health and economic outlook for South Africa.”<\/p>\n Absa said that South Africa\u2019s recovery from the impact of lockdowns looks like it might be a difficult one for the majority of consumers, especially because of the compounding effect of the interest rate hikes as well as the increasing fuel and energy prices.<\/p>\n “In summary, it seems the chicken has come home to roost,” said Cordier.<\/p>\n The table below shows the total percentage change in spend per category. This is derived from our Merchant Spend Data:<\/p>\n\n\n
\n YTD April<\/th>\n 2020-2021<\/th>\n 2021-2022<\/th>\n CAGR<\/th>\n Full Year (2020-2021)<\/th>\n<\/tr>\n \n Games and Gaming<\/td>\n 644%<\/td>\n 109%<\/td>\n 294%<\/span><\/td>\n 432%<\/td>\n<\/tr>\n \n Nightclubs<\/td>\n 66%<\/td>\n 50%<\/td>\n 58%<\/span><\/td>\n 71%<\/td>\n<\/tr>\n \n Fast Food<\/td>\n 54%<\/td>\n 19%<\/td>\n 35%<\/span><\/td>\n 46%<\/td>\n<\/tr>\n \n Electronics and Computers<\/td>\n 65%<\/td>\n 7%<\/td>\n 33%<\/span><\/td>\n 23%<\/td>\n<\/tr>\n \n Transportation<\/td>\n -21%<\/td>\n 114%<\/td>\n 30%<\/span><\/td>\n -4%<\/td>\n<\/tr>\n \n Building and Hardware<\/td>\n 61%<\/td>\n 0%<\/td>\n 27%<\/span><\/td>\n 20%<\/td>\n<\/tr>\n \n Home and Garden<\/td>\n 70%<\/td>\n -5%<\/td>\n 27%<\/span><\/td>\n 21%<\/td>\n<\/tr>\n \n Clothing<\/td>\n 45%<\/td>\n 9%<\/td>\n 26%<\/span><\/td>\n 20%<\/td>\n<\/tr>\n \n Stationary and Office Furniture<\/td>\n 42%<\/td>\n 11%<\/td>\n 26%<\/span><\/td>\n 25%<\/td>\n<\/tr>\n \n Automotive<\/td>\n 43%<\/td>\n 9%<\/td>\n 25%<\/span><\/td>\n 23%<\/td>\n<\/tr>\n \n Gambling<\/td>\n 13%<\/td>\n 33%<\/td>\n 23%<\/span><\/td>\n 39%<\/td>\n<\/tr>\n \n Tourism<\/td>\n -17%<\/td>\n 78%<\/td>\n 22%<\/span><\/td>\n 39%<\/td>\n<\/tr>\n \n Garages<\/td>\n 16%<\/td>\n 13%<\/td>\n 14%<\/span><\/td>\n 26%<\/td>\n<\/tr>\n \n Education<\/td>\n -17%<\/td>\n 33%<\/td>\n 5%<\/span><\/td>\n 5%<\/td>\n<\/tr>\n \n Grocery Stores and Supermarkets<\/td>\n 4%<\/td>\n 0%<\/td>\n 2%<\/span><\/td>\n 4%<\/td>\n<\/tr>\n \n Health and Beauty<\/td>\n 7%<\/td>\n -2%<\/td>\n 2%<\/span><\/td>\n 12%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
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