S. Africa’s CCI slightly improves

South Africa’s consumer confidence improved slightly in Q2 due to reduced load-shedding and lower fuel and food prices, while uncertainty about national election worried some consumers, according to data released Thursday.

The consumer confidence index (CCI), sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research (BER), rose to -12 points from -15 in Q1.

FNB Chief Economist Mamello Matikinca-Ngwenya cited the cessation of load-shedding, fuel price cuts in June, and slower food inflation as factors boosting confidence, particularly among low- and middle-income consumers. Confidence among high-income households remained unchanged due to high interest rates and election uncertainty.

Ngwenya noted that if the government of national unity (GNU) stays intact and the JSE and rand maintain recent gains, high-income confidence will improve in Q3. The African National Congress (ANC) and the Democratic Alliance have agreed to co-operate in the new GNU, which investors hope will accelerate reforms in electricity, rail, and port sectors to revive the struggling economy and address high unemployment.

Attribution: Reuters citing First National Bank (FNB).