{"id":736639,"date":"2023-12-07T12:30:00","date_gmt":"2023-12-07T10:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=736639"},"modified":"2023-12-07T12:25:00","modified_gmt":"2023-12-07T10:25:00","slug":"alarm-bells-for-south-africans-earning-more-than-r20000-a-month","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/736639\/alarm-bells-for-south-africans-earning-more-than-r20000-a-month\/","title":{"rendered":"Alarm bells for South Africans earning more than R20,000 a month"},"content":{"rendered":"\n<p>Confidence amongst South African consumers is still in the dumps, with wealthy South Africans (those earning above R20,000) concerned about the economy&#8217;s trajectory. <\/p>\n\n\n\n<p>After jumping from 25 index points during Q2 2023 to -16 in Q3 2023, the FNB\/BER Consumer Confidence Index (CCI) dropped slightly to -17 in Q4. <\/p>\n\n\n\n<p>Although this is an improvement from the year&#8217;s first half, the latest reading is the lowest festive-season consumer confidence reading in over two decades &#8211; even lower than the -12 recorded during the Covid-19-affected Q4 2020. <\/p>\n\n\n\n<p>Consumers are likely to drop spending during this holiday season, which is a blow for retailers, especially those who sell luxury goods. <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-1.png\"><img loading=\"lazy\" decoding=\"async\" width=\"840\" height=\"612\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-1.png\" alt=\"\" class=\"wp-image-736645\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-1.png 840w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-1-300x219.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-1-768x560.png 768w\" sizes=\"auto, (max-width: 840px) 100vw, 840px\" \/><\/a><\/figure><\/div>\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"QmsRfzwzHH\"><a href=\"https:\/\/businesstech.co.za\/news\/business\/734743\/the-goldmine-for-shopping-malls-in-south-africa\/\">The goldmine for shopping malls in South Africa<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;The goldmine for shopping malls in South Africa&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/business\/734743\/the-goldmine-for-shopping-malls-in-south-africa\/embed\/#?secret=SCcHSPgCY4#?secret=QmsRfzwzHH\" data-secret=\"QmsRfzwzHH\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>The slight drop in the overall CCI was due to a relapse in the economic outlook sub-index, which dropped from -22 in Q3 to -28 in Q4. <\/p>\n\n\n\n<p>However, the household financial outlook sub-index increased from -1 to +3, while the index measuring the appropriateness of the present time to buy durable goods (such as vehicles, furniture, etc.) increased by 1 index point to -25. <\/p>\n\n\n\n<p>Nonetheless, most consumers still feel that it is not the right time to buy big-ticket durable goods.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNC-CCI-4.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"255\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNC-CCI-4-1024x255.jpg\" alt=\"\" class=\"wp-image-736647\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNC-CCI-4-1024x255.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNC-CCI-4-300x75.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNC-CCI-4-768x192.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNC-CCI-4.jpg 1219w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n<p class=\"has-medium-font-size\"><strong>Economy vs household <\/strong><\/p>\n\n\n\n<p>On an income basis, those in high-income households (earning more than R20,000 per month) and middle-income households (earning between R5,000 and R20,000 per month) dropped by two index points.<\/p>\n\n\n\n<p>Meanwhile, the confidence of low-income households (earning less than R5,000 per month) improved slightly &#8211; though it remained in negative territory. <\/p>\n\n\n\n<p>&#8220;With a CCI reading of -13, low-income households are slightly less pessimistic about the outlook for the national economy and their own household finances compared to more affluent consumers,&#8221; FNB said. <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-2.png\"><img loading=\"lazy\" decoding=\"async\" width=\"921\" height=\"577\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-2.png\" alt=\"\" class=\"wp-image-736643\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-2.png 921w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-2-300x188.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-2-768x481.png 768w\" sizes=\"auto, (max-width: 921px) 100vw, 921px\" \/><\/a><\/figure><\/div>\n\n\n<p>&#8220;Sustained strong job growth heading into the festive season, especially in the tourism sector, may have countered the adverse impact of cost-of-living pressures on low-income households in general,&#8221; FNB Chief Economist&nbsp;Mamello&nbsp;Matikinca-Ngwenya&nbsp;said. <\/p>\n\n\n\n<p>&#8220;The announcement that the Social Relief of Distress (SRD) grant will be extended through March 2025 probably also buoyed the confidence of the 8.6 million SRD grant recipients.&#8221; <\/p>\n\n\n\n<p>For high- and middle-income consumers, <strong>high interest rates and a marked degeneration in South Africa\u2019s fiscal position are causing concern. <\/strong><\/p>\n\n\n\n<p>&#8220;In its November MTBPS, th<strong>e National Treasury said it would introduce additional measures to raise tax revenue<\/strong> and cut real government spending in 2024, which will adversely affect the disposable income of high- and middle-income consumers in particular,&#8221; Matikinca-Ngwenya added. <\/p>\n\n\n\n<p>Interestingly, consumers are far more pessimistic about the outlook for the national economy than their own household\u2019s perceived financial prospects. <\/p>\n\n\n\n<p><strong>The vast majority of households, particularly the wealthy, are pessimistic about the outlook for the South African economy, <\/strong>but a small majority of households (especially the less wealthy) expect their household finances to improve over the next year. <\/p>\n\n\n\n<p>&#8220;To be sure, measured from 1994, the average reading for the economic outlook sub-index of the CCI (0) is 11 points lower than the average reading for the household financial prospects index (+11). However, the reading for the economic outlook index is currently a massive 31 index points lower than the household finances index,&#8221; FNB said.<\/p>\n\n\n\n<p>&#8220;The gap between these two sub-indices widened again in the fourth quarter and is especially large for high-income households (38 index points).&#8221; <\/p>\n\n\n\n<p>\u201cTo an extent, this suggests that consumers are cognisant of the adverse implications that factors like high levels of load shedding, Transnet\u2019s logistical constraints and a tightening in fiscal policy hold for economic growth in South Africa. However &#8211; rightly or wrongly &#8211; they do not expect flagging economic growth to lead to an equivalent deterioration in their own financial positions,&#8221; Matikinca-Ngwenya explained. <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-3.png\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"547\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-3.png\" alt=\"\" class=\"wp-image-736641\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-3.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/FNB-CCI-3-300x214.png 300w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/a><\/figure><\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a rel=\"noreferrer noopener\" href=\"https:\/\/businesstech.co.za\/news\/business-opinion\/736603\/everyone-the-government-ignored-readies-for-war-over-the-nhi\/\" target=\"_blank\">Everyone the government ignored readies for war over the NHI<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consumers and retailers are expected to feel the pain this festive season<\/p>\n","protected":false},"author":95,"featured_media":700011,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[14829,26],"class_list":["post-736639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-ber","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/736639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=736639"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/736639\/revisions"}],"predecessor-version":[{"id":736743,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/736639\/revisions\/736743"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/700011"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=736639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=736639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=736639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}