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<\/a><\/figure><\/div>\n\n\nFNB said that the recovery in the CCI was mainly due to the strong rebound in the economic outlook sub-index (jumping from -37 in Q2 to -22 in Q3 ) and the improvement in the time-to-buy durable goods sub-index (improving from -35 in Q2 to -26 in Q3).<\/p>\n\n\n\n
The financial outlook sub-index also increased by 1 index point to -1. <\/p>\n\n\n\n
All three sub-indices are still well below their long-term average readings, but consumers are more concerned about the outlook for their national economy than their own household finances. <\/p>\n\n\n\n High-income households – those with earnings of more than R20,000 – saw a huge rebound in their confidence levels from -40 in Q2 2023 to -17 in Q3. <\/p>\n\n\n\n Load shedding, the rand’s weaknesses, tensions with the US and high-interest rates all concerned affluent consumers. <\/p>\n\n\n\n Middle-income households – earning between R5,000 and R20,000 per month – also saw their confidence levels improve from -22 in Q2 to -15 in Q3, whilst confidence levels for low-income households remained unchanged at -16. <\/p>\n\n\n\n “While the financial pulse of the nation remains weak, there appears to be some light at the end of the tunnel for consumers,” FNB Chief Economist Mamello Matikinca-Ngwenya said<\/p>\n\n\n\n “The CPI inflation rate cooled from 7.1% in March 2023 to 4.7% in July, fuelling hopes that the South African Reserve Bank has reached the end of its interest rate hiking cycle.” <\/p>\n\n\n\n “Combined with a sustained recovery in employment \u2013 with another 154 000 jobs added during the second quarter \u2013 lower inflation should bolster the purchasing power of consumers somewhat towards the end of 2023.” <\/p>\n\n\n\n The decline in load shedding, the further investment in alternative power supplies, and diminished concerns over ties with the West also heartened consumers. <\/p>\n\n\n\n These positive impacts minimised the effects of the truck attacks on the N3 transport corridor in July and the week-long taxi strike in Cape Town in August. <\/p>\n\n\n<\/td> 2021 Av<\/strong><\/td> 2022 Avg<\/strong><\/td> Q1 2023<\/strong><\/td> Q2 2023<\/strong><\/td> Q3 2023<\/strong><\/td><\/tr> Overall, FNB\/BER CCI<\/td> -10<\/td> -17<\/td> -23<\/td> -25<\/td> -16<\/td><\/tr> Economic outlook<\/td> -11<\/td> -27<\/td> -34<\/td> -37<\/td> -22<\/td><\/tr> Household financial outlook<\/td> 12<\/td> 4<\/td> -1<\/td> -2<\/td> -1<\/td><\/tr> Suitability of the present time to buy durable goods<\/td> -32<\/td> -26<\/td> -34<\/td> -35<\/td> -26<\/td><\/tr><\/tbody><\/table><\/div>