South Africa’s consumer confidence fell further in the second quarter, according to a survey released on Thursday, as the country struggled with soaring fuel and food prices and higher interest rates.
The consumer confidence index, sponsored by the First National Bank (FNB) and compiled by the Bureau for Economic Research, fell to a reading of minus 25 points, from minus 23 points in the first quarter of 2023.
South Africa has been battling high inflationary pressures and local power cuts that have led to a rise in diesel consumption by households relying on back-up generators.
The June-quarter reading is the second-lowest on record since 1994 and indicative of concerns among consumers about economic prospects in South Africa and household finances, according to the survey.
A vast majority of consumers expects a deterioration in South Africa’s economic growth over the next 12 months and considers present time as highly inappropriate to purchase durable goods such as furniture, vehicles and household appliances.