South African Consumer Confidence Improves

Consumer confidence in South

Africa improved slightly in the fourth quarter, reflecting strongerthan-expected economic growth in previous quarters, a recent survey showed.

The consumer confidence index, sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research, improved to minus eight from minus nine in the second quarter.

“The improvement in consumer sentiment regarding South Africa’s economic prospects correlates with the stronger-than-expected rebound in real GDP growth during the second and third quarters of 2017,” Jason Muscat, senior economic analyst at FNB, said.

South Africa’s economy grew more than expected in the third quarter as the agricultural sector continued to recover from a severe drought, while mining and manufacturing also improved, lifting hopes the country may avoid further credit downgrades.

The International Monetary

Fund cut South Africa’s economic growth forecast for the next two years recently, citing rising political uncertainty that has dented investor confidence.