The FNB/BER consumer confidence index (CCI) remained unchanged at +5 index points during 1Q2012, after falling by 7 index points to +4 in 3Q2011, and edging up to +5 in 4Q2011.
“The average reading for the CCI since 1994 has been +6 index points,” FNB chief economist Cees Bruggemans said. “With the CCI currently at +5, consumer confidence is at a fairly neutral level, neither supporting nor impeding consumer spending.”
The FNB/BER CCI combines the results of three questions posed to adults in South Africa from February 8-21, 2012 - namely the expected performance of the economy, the expected financial position of households, and the rating of the appropriateness of the present time to buy durable goods such as furniture, appliances and electronic equipment.
During 1Q2012, a slightly higher percentage of consumers reported that they expected the economic situation in South Africa to improve over the next 12 months. However, this increase was countered by a decline in the percentage of consumers that rated the present time as appropriate to purchase durable goods. The percentage of consumers expecting their financial position to improve over the next 12 months remained virtually unchanged between 4Q2011 and 1Q2012.
The CCI survey was conducted before the National Budget Speech by the Minister of Finance on February 22, implying that any impacts from the Budget Speech will only be reflected in consumer confidence during the 2Q2012 survey, Bruggemans added
