CONSUMER CONFIDENCE

The FNB/BER Consumer Confidence Index clawed back five points to reach -20 in the third quarter, after plunging to -25 in the second quarter. Save for the level-five Covid-19 lockdown during the second quarter of 2020, when confidence nosedived to -33, this year’s second-quarter reading of -25 was the lowest in 36 years. At -20 points, consumer sentiment remains extremely depressed and signals a substantial deceleration in real spending growth relative to the start of the year. However, FNB chief economist Mamello Matikinca-ngwenya said “the confidence levels of less affluent households recovered smartly, despite further sharp increases in food and transport costs.”