Household finances in South Africa are in a sorrowful state, with many not having enough savings to survive shocks. <\/p>\n\n\n\n
While income is increasing marginally, household debt remains high – and in turn, savings are in decline as South Africans look for what little there is to cover costs.<\/p>\n\n\n\n
According to Nedbank’s analysis of the South African Reserve Bank’s (SARB’s) latest quarterly bulletin, household finances were somewhat stable in Q4 2023. <\/p>\n\n\n\n
Real disposable income (PDI) jumped by 0.1% qoq (or an annualised 0.4% qoq) after dropping over the last three quarters. <\/p>\n\n\n\n
“The boost came from a rebound in other income sources (i.e. profits, dividends, rents and interest), while compensation of employees (COE) remained under pressure,” said Nedbank.<\/p>\n\n\n\n
Nominal compensation grew by 0.5% qoq and 6.8% yoy in Q4 2023 but dropped by 0.9% qoq, albeit still up 1.3% yoy, in real or inflation-adjusted terms. <\/p>\n\n\n\n
The drop was mainly due to the impact of lower employment, with the quarterly employment survey (QES) showing total employment dropped by 1.8% qoq in Q4.<\/p>\n\n\n\n