Falling Covid-19 cases boosts consumer confidence

Consumer confidence continues to improve after it plummeted to a 35-year low of -33 in quarter two of 2020, but it’s still in negative territory. The latest consumer confidence index, compiled by FNB and the Bureau for Economic Research, showed that consumer confidence improved to -9 from -12 in quarter four of 2020. However, it remains below its long-term average of +1. Absa’s economic note said that falling Covid-19 cases and the vaccination programme’s acceleration after a slow start could support overall consumer confidence in the coming quarters — but this may change if a third wave occurs.